The European Union is closing in on tech giants with its latest regulatory moves, and Apple is squarely in the crosshairs. With the EU’s Digital Markets Act (DMA), Apple’s iMessage could be required to support Rich Communication Service (RCS), the messaging platform used by Android devices. This comes after the EU’s mandate for Apple to replace its iPhone’s proprietary Lightning port with a USB-C port. The decision on whether iMessage is a “gatekeeper” service will be announced tomorrow, September 6th.
Apple’s Ecosystem could be revamped following a change as big as this, if it goes through
What’s curious is how these regulatory changes could affect consumer choice. iMessage has long been a distinguishing feature for iPhone users, offering end-to-end encryption, high-quality media sharing, and other perks. However, RCS isn’t far behind; it provides Android users with similar functionalities, including suggested replies and location sharing. If iMessage is forced to adopt RCS, the line between iPhone and Android devices could blur, potentially impacting Apple’s customer retention.
Yet, the battle isn’t entirely about features; it’s also about numbers. To be classified as a gatekeeper, a company must have a turnover of at least €7.5 billion in the last three years or a fair market value of €75 billion in the last financial year, among other requirements. Apple argues that iMessage doesn’t meet the EU’s gatekeeper criteria, citing its lower user base in the EU.
So, will these regulatory changes alter the smartphone landscape significantly? It’s debatable. Features like Animojis, Memojis, and handwritten notes, exclusive to iMessage, may still lure users to iPhones. Similarly, Android devices have their own unique offerings. Apple’s push against the gatekeeper label suggests they’re concerned, but it’s unclear if feature parity in messaging apps would be enough to swing consumer loyalty from one brand to another.
Whether you’re Team iPhone or Team Android, keep an eye out for tomorrow’s announcement. For Apple CEO Tim Cook, it might just be another sleepless night wondering how much the EU can influence his company’s stronghold on its ecosystem.
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(Via)
