Interoperability and search considerations draw Digital Markets Act focus

It comes as two important developments were announced focusing on interoperability with Apple’s devices and Alphabet’s compliance with the DMA.

In relation to Apple, the European Commission has for the first time adopted so-called “specification” decisions under the DMA. The specification decisions, which follow specification proceedings that commenced in September 2024, are intended to assist Apple in complying with its interoperability obligations under Article 6(7) of the DMA.

The Commission’s first specification decision sets out measures to improve interoperability with Apple’s smartphone operating system (iOS), allowing third party connected devices to work seamlessly with iPhones. The decision covers nine iOS connectivity features, including displaying notifications on smartwatches, faster data transfers through peer-to-peer Wi-Fi connections and near-field communication, and easier device set up through pairing.

In its second specification addressed to Apple, the Commission has set out measures to improve the transparency and effectiveness of Apple’s process for developers interested in obtaining interoperability with iPhone and iPad features. It includes improved access to technical documentation on features not yet available to third parties, timely communication and updates, and a more predictable timeline for the review of interoperability requests.

By facilitating Apple’s compliance with its interoperability obligations under the DMA, the Commission seeks to provide new opportunities for device manufacturers and app developers to bring innovative products to the market, leading to the development of innovative products that are compatible with Apple devices.

The Commission also considers that developers will benefit from fast and fair handling of their interoperability requests, as the measures will accelerate their ability to offer a wider choice to European consumers of innovative services and hardware that interoperate with iPhones and iPads.

The two specification decisions are legally binding, and Apple is required to implement the measures in accordance with the timeframes and conditions set out in the decisions.   Unlike non-compliance cases, specification proceedings define how obligations should be met rather than sanctioning breaches of the DMA. Therefore, specification proceedings do not provide for the imposition of fines. Non-compliance proceedings may ultimately lead to the imposition of fines under the DMA.

In a parallel development announced on the same day, the European Commission has sent preliminary findings to Alphabet concerning alleged non-compliance with the DMA regarding two core platform services for which it has been designed as a gatekeeper.

The Commission’s preliminary view is that Google Search favours Alphabet’s own services over rival ones. The Commission is of the opinion that this does not ensure transparent, fair, and non-discriminatory treatment of third party services as required by the DMA. Alphabet’s services, such as shopping, hotel booking, transportation, and financial and sports results, receive more prominent treatment in search results compared to similar services offered by third parties, according to the Commission’s preliminary findings.

The Commission’s initial findings also indicate that Alphabet’s app marketplace, Google Play, prevents app developers from freely steering consumers to other channels for better offers. Under EU digital markets competition rules set out in the DMA, app developers should be able to inform customers of cheaper alternative options and direct them to these without technical impediments.

The Commission’s preliminary findings do not prejudge the outcome of the DMA investigation and Alphabet is able to continue to engage with the Commission going forward.  Separately, Commission non-compliance procedures under the DMA involving other gatekeepers, including Apple, which commenced in late March 2024, are still ongoing.

It is now more than a year since the conduct obligations under the DMA started to fully apply, in early March 2024, to the first group of “gatekeeper” digital firms, and their respective “core platform services” (CPSs), that were designated in September 2023.  Since that time, the list of designated CPSs has slightly expanded.

A separate new digital markets competition regime came into force on 1 January in the UK, under the landmark Digital Markets, Competition and Consumers Act 2024 (DMCC Act). The DMCC Act, which is enforced by the UK’s Competition and Markets Authority (CMA), pursues the same broad objectives as the EU’s DMA, however its application and enforcement is intended to be more bespoke and participative. The UK regime only applies to digital firms designated by the CMA as having strategic market status (SMS) in relation to a specified digital activity.

Technology firms that are designated as both gatekeepers under the DMA and as SMS firms under the DMCC Act will have to comply with the two different regimes in relation to their respective EU and UK activities.