New AI Regulation Agreement May Benefit Apple Intelligence in EU

A new agreement between the US, EU, and UK on AI regulation may pave the way for Apple to launch its Intelligence features in EU countries. This development comes as law enforcement bodies from these regions have agreed to adopt common principles in addressing antitrust concerns over AI products and services.

Regulatory Challenges for Apple

Apple had previously announced that its Intelligence features, set to launch later this year, would exclude EU countries due to regulatory uncertainties brought about by the Digital Markets Act. The features affected include iPhone Mirroring, SharePlay Screen Sharing enhancements, and Apple Intelligence.

Meta made a similar announcement, citing the same regulatory concerns.

Joint Statement on AI Regulation

The EU’s European Commission, the UK’s Competition and Markets Authority, the US Department of Justice, and the US Federal Trade Commission have now issued a joint statement committing to common principles for AI regulation. These principles aim to ensure fair competition and foster innovation in the AI sector.

Key Principles and Potential Risks

The statement outlines three key principles:

• Fair Dealing: Ensuring firms engage in fair practices to promote competition and innovation.

• Interoperability: Encouraging AI products and services to work together seamlessly, with scrutiny on claims that interoperability compromises privacy and security.

• Choice: Examining mechanisms of lock-in that prevent meaningful options for companies or individuals.

The statement further elaborates on potential risks that could undermine fair competition:

• Concentrated Control of Key Inputs: Specialized chips, substantial compute power, data at scale, and technical expertise are critical for developing AI technologies. This concentration could allow a few companies to dominate the AI market.

• Entrenching Market Power: Large incumbent digital firms with substantial market power may use AI to protect or extend their dominance, leveraging control over AI distribution channels.

• Anti-Competitive Arrangements: Partnerships and investments between key players could be used to undermine competition and steer market outcomes in favor of major firms.

Commitment to Fair and Open Markets

The regulatory bodies emphasize their commitment to fair, open, and competitive markets to unlock the full potential of AI technologies. They recognize the transformational potential of AI and the need for vigilance against tactics that could harm competition and innovation.

Outlook for Apple Intelligence

The new regulatory alignment could potentially ease the rollout of Apple Intelligence features in the EU. However, the EU’s stricter interpretation of these principles may still pose challenges for Apple, particularly given its history of conflicts with EU regulations on its walled-garden approach.

Time will tell how these common principles will be interpreted and enforced, and whether they will facilitate the launch of Apple Intelligence features in the EU.