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| Roberto Rustichelli, President of the Italian Competition Authority (AGCM), poses in his office alongside the Italian and European Union flags |
ROME - Italy's Competition and Market Authority has turned the spotlight on Apple and its compliance with European rules for digital markets. At the centre of the investigation is the possible lack of access for competing cloud services to the same system functionalities reserved for iCloud on iPhones and iPads. This is the first intervention by the Italian Antitrust Authority under the Digital Markets Act and could have significant effects on competition in the cloud sector. The findings of the investigation will be forwarded to the European Commission, which holds the powers to enforce the regulation.
The hardware and software components controlled through Apple's iOS and iPadOS operating systems
Italy's Competition and Market Authority is intervening in relation to cloud services by launching an investigation into Apple pursuant to the Digital Markets Act. Under the Digital Markets Act, Apple must ensure that third parties are granted effective interoperability, free of charge, with the hardware and software components controlled through Apple's iOS and iPadOS operating systems. The Antitrust Authority has opened an investigation into Apple Inc., Apple Distribution International Ltd and Apple Italia S.r.l. (hereinafter, "Apple") regarding compliance with the interoperability obligation established by the Digital Markets Act (hereinafter, the "DMA"), to which Apple's iOS and iPadOS operating systems are subject. Pursuant to Article 6(7) of the DMA, Apple must provide third-party consumer cloud service providers, free of charge, with effective interoperability with the iOS and iPadOS operating systems, as well as equal access to the same hardware and software components that are available to Apple's iCloud service.
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Annual Law for the Market and Competition 2022
The AGCM has grounds to believe that third-party consumer cloud service providers may not be placed on the same footing as Apple's iCloud service, as they do not appear to have access to the same components used by, or otherwise made available to, iCloud. By way of example, it would appear that Apple does not allow alternative cloud storage services for end users to make use of the iOS and iPadOS components that enable full backup of the data stored on devices, whereas this functionality is available to Apple's iCloud service. This is the first time that the Authority has exercised the powers provided for under Article 38(7) of the DMA, specifically conferred by Law No. 214 of 30 December 2023, entitled "Annual Law for the Market and Competition 2022", and in particular by Article 18, "Measures for the implementation of Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector". Under this law, the Antitrust Authority may assist the European Commission (hereinafter, the "Commission") by carrying out preliminary investigations pursuant to the DMA. The proceedings were initiated in close cooperation with the Commission. The results of the AGCM's investigation will be transferred to the Commission in support of its role as the sole authority responsible for enforcing the DMA.
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