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EU Blocks Rollout Of Apple’s AI Features

by THEFUTURE.TEAM

June 24, 2024

Apple will delay the launch of three new artificial intelligence features in Europe because of tougher EU tech regulations that require the giant to make its products and services compatible with those of competitors.

KEY FACTS

On Friday, the company announced that three of the new AI features — Phone Mirroring, SharePlay screen-sharing enhancements and Apple Intelligence (one of the long-awaited innovations that work with powerful generative models) — won’t be rolling out to EU users this year due to regulatory uncertainty related to the EU Digital Markets Act (DMA), reported by the Reuters agency.

IMPORTANT QUOTE

“Specifically, we are concerned that the interoperability requirements under the DMA may force us to compromise the integrity of our products in a way that threatens user privacy and data security. “We are committed to cooperating with the European Commission to find a solution that allows us to provide these features to our customers in the EU without jeopardizing their safety,” Apple said in an email.

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CONTRA

The EU is an attractive market with 450 million potential consumers and has always been open for business for any company that wants to provide services to the European internal market. So-called “gatekeeper” companies are welcome to offer their services in Europe, provided they comply with our rules aimed at ensuring fair competition,” said EU spokesman Thomas Rainier, quoted by The Verge, on the occasion of Apple’s statement.

KEY STORY

The news comes after the iPhone maker unveiled its plans for the wider integration of artificial intelligence into Apple products.

However, the company is facing problems because of the Digital Markets Act (DMA), which came into force in March and provides for strict rules in the world of technology in the territory of the European Union. According to strict technology rules, iOS – the company’s operating system – has been designated as a so-called “gatekeeper”, which could force the tech giant to change its way of working in the region.

For months, Apple and Brussels have been embroiled in a regulatory battle over compliance, after the EU launched a probe in March into whether the company was still undermining competition.

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Volvo Profit Falls To 1.6B Crowns As Sales Drop 11%

Volvo Cars, part of Geely Holding, reported first-quarter results showing a decline in operating profit that was less pronounced than expected, even as sales fell by 11%. The results reflect the company’s cost management efforts alongside external pressures, particularly in the United States.

Operating Profit And Strategic Cost Management

Operating profit declined to 1.6 billion Swedish crowns from 1.9 billion crowns a year earlier, as sales fell by 11%, with a gross margin of 18.5% helping limit the impact. Håkan Samuelsson, Chief Executive Officer, said the company faced a challenging environment, adding that cost measures helped maintain profitability despite lower volumes. Analysts at Handelsbanken, Bernstein, and J.P. Morgan noted that the decline was less severe than expected, compared with consensus estimates of 900 to 950 million crowns.

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US Market Challenges And Policy Impacts

At the same time, the United States proved more challenging than expected. The removal of a $7,500 tax credit, which had supported demand for plug-in and electric vehicles, added pressure alongside higher costs related to tariffs and currency movements. Samuelsson said, “We are not satisfied with our results, but despite a volume drop coming from external factors we are more or less flat in profitability,” indicating that external conditions had a greater impact than internal operations.

Looking Ahead: A Focus On Growth

Volvo expects to support sales growth in the second half of the year. This includes the ramp-up of its new electric EX60, alongside efforts to maintain market share in the European premium segment. The company is also focusing on balancing cost control with ongoing investment, as it navigates geopolitical developments and changing policy conditions.

Conclusion

The results show how cost measures and external factors are shaping performance across markets. They also point to adjustments in product strategy and investment as the company responds to evolving demand conditions.