Apple Asks EU to Tear Up Digital Markets Act, Cites 3 Delayed iPhone Features and Security Risks

Apple (NASDAQ: AAPL) has formally asked the European Union to tear up the Digital Markets Act and draft a replacement it says fits modern tech - a blunt move that turns a regulatory skirmish into a full-blown policy fight.

The company argues the DMA has slowed rollout of several EU-specific features and raised what it calls privacy and security risks. Apple points to postponed items like iPhone screen mirroring to Mac, live translation through AirPods and certain location-based functions in Maps as examples of capabilities it can't launch in Europe without running afoul of the law's interoperability requirements.

At the heart of the dispute: the DMA's mandate that big platforms open up to third-party apps and devices. Regulators want gatekeepers to permit interoperability with non‑native hardware and services; Apple says meeting that demand without eroding user data protections or platform safety isn't currently possible. The company says proposed safeguards it offered were rejected by EU officials.

The European Commission has been firm in return. It has reiterated that obligations under the DMA are compulsory for listed gatekeepers and that allowing third-party interoperability is a core requirement - not optional. The Commission is now in a review phase of the DMA and had solicited stakeholder feedback through late September.

Apple also argues that opening the system has already degraded user experience in the bloc by enabling sideloading and alternative app marketplaces - channels it says bring higher risks of scams, malware and apps that previously wouldn't have passed App Store standards. Back in June, Apple adjusted App Store rules and fees in the EU as part of complying with existing antitrust orders, but it says that hasn't solved the underlying problems.

There's a geopolitical layer, too: the DMA has drawn criticism from the U.S. administration under President Donald Trump, while the Commission has pushed back against that critique. The broader point is that this is no longer a narrow regulatory spat; it's a cross‑Atlantic tussle with commercial and political overtones.

For stock traders the implications are straightforward to map, even if there's no simple conclusion. Regulatory pushback could mean delayed feature rollouts and potential friction with EU revenues and developer relationships. A fragmented European app ecosystem could change how services are monetized there and may raise compliance costs. Conversely, any successful legal or legislative challenge that weakens the DMA would be a win for platform control - and for the company's product roadmap - but it may breed fresh regulatory reaction elsewhere.

Expect headlines, legal briefs and policy statements to keep showing up. That tends to translate into short-term share volatility. The longer stories to watch: whether Apple can technically satisfy both the DMA's demands and its own privacy standards, and whether the Commission's review leads to tweaks or a harder line.

So where does this leave the market? The fight is as much about code and engineering trade-offs as it is about political leverage. Which side ends up writing the rulebook will shape not only user experience in Europe but also how global platforms design products from here on out - and that's not small beer for anyone watching big-cap tech.

One final note: Apple's filing makes clear the company believes the DMA is causing concrete product delays and security trade-offs in Europe. Whether regulators see it the same way is the next chapter - and that chapter won't be short.