EU Regulators Reject Apple's Request for Exemption on Siri AI Delay

EU regulators on Tuesday rejected Apple's (AAPL) request for an 18-month exemption from its obligations under the Digital Markets Act (DMA), escalating a dispute over the iPhone maker's decision to delay the rollout of its upgraded Siri AI assistant in the European Union.

Details of the Action

The European Commission said it had turned down Apple's application for a temporary exemption from certain DMA provisions, which the company had sought to justify postponing the launch of Siri AI in the bloc. The Commission stressed that the rules apply equally to all companies and that individual exemptions cannot be granted.

Company's Stance

Apple, in response, said Siri AI would not initially be available on iPhones and iPads in the EU, and faulted the European Commission for refusing to "engage constructively" with them. The company added that it remains committed to complying with the law but needs more time to adapt its products.

Precedents and Context

The dispute is part of the broader enforcement of the DMA, which took effect in March 2024 and aims to regulate the practices of big tech companies. The Commission has already imposed fines and launched investigations against Google and Meta for alleged violations.

Potential Financial Impact

The delay in launching Siri AI in Europe could cost Apple market share in the smart assistant space, especially against rivals like Google Assistant and Amazon Alexa. Additionally, the company may face financial penalties if found to be in non-compliance with the DMA.