We begin with my thoughts on Apple warning of feature delays in the EU due to the Digital Markets Act (DMA). The discussion then turns to the European Commission finding Apple has broken DMA rules. We discuss a possible natural end state for the cat and mouse game.

Happy Wednesday. We will jump right into today's update.

Apple Warns of Feature Delays in EU

Heading into last week, we had good reason to assume Apple Intelligence’s rollout was going to be more gradual than consensus thought.

Apple had disclosed that the entire Apple Intelligence portfolio of features and services would be given the beta label (which also serves to avoid another Apple Maps launch debacle circa 2012). More interestingly, Apple also said Apple Intelligence would only be available in U.S. English and on select devices. Those factors told me Apple Intelligence won't be so much a September 2024 event but more of a late 2024 and 2025 event.

As it turns out, a number of features announced at WWDC may end up being delayed for Apple users in the EU.

Here's The Financial Times:

“Apple has warned that it will not roll out the iPhone’s flagship new artificial intelligence features in Europe when they launch elsewhere this year, blaming ‘uncertainties’ stemming from Brussels’ new competition rules.

The iPhone maker unveiled features two weeks ago, including a suite of ‘Apple Intelligence’ services and a partnership with OpenAI, in what chief executive Tim Cook described as its ‘next big step’ propelling the tech giant into the age of generative AI.

But Apple on Friday said complexities in making the system compatible with EU rules — which have forced it to make critical parts of its iOS software and App Store services interoperable with third parties — meant EU users will be denied certain features when they launch in other parts of the world later in 2024.

Apple said on Friday: ‘Due to the regulatory uncertainties brought about by the Digital Markets Act, we do not believe that we will be able to roll out three of these [new] features — iPhone Mirroring, SharePlay Screen Sharing enhancements and Apple Intelligence — to our EU users this year.’”

The way this news was framed on social media caught me by surprise.

An Above Avalon membership is required to continue reading this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)

Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.

Subscribe $20/month

Subscribe $200/year

Contact me directly if you would like to purchase multiple subscriptions (five or more) for your team or company.

An audio version of the newsletter is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-ons.