iPhone 16 Pro Hit by Major Downgrade In EU Under Digital Markets Act

In a strategic move, Apple has decided to exclude its much-anticipated generative AI feature, known as “Apple Intelligence,” from the iPhone 16 Pro in the European Union (EU). This action follows the effects of the EU’s Digital Markets Act (DMA) on Apple’s plans for its latest flagship device, as reported by Forbes.

The DMA, designed to promote fair competition in the digital marketplace, has compelled Apple to alter its typically closed ecosystem significantly. A major consequence is the inability to introduce Apple Intelligence, which was expected to be a major selling point for the iPhone 16 Pro.

Apple announced, “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 removal of Apple Intelligence from the European market represents a significant setback for Apple, as the generative AI software was anticipated to transform user interaction with smartphones. The feature promised seamless AI-powered integration across apps and services, potentially setting a new standard in the smartphone industry.

Apple’s decision is influenced by concerns over the DMA’s impact on user privacy and data security. The company worries that the DMA’s requirements for interoperability could jeopardize the integrity of its products, possibly exposing sensitive user data to third parties.

The absence of Apple Intelligence in the EU will disappoint many iPhone fans, as the feature was projected to be a substantial upgrade compared to its competitors, offering a more personalized and efficient user experience through advanced AI.

This move puts Apple at a competitive disadvantage in the European market. Rivals like Google’s Gemini AI and Samsung’s Galaxy AI will have an edge in collecting user data and enhancing their AI capabilities with their flagship devices.

Despite this challenge, Apple remains focused on its core brand values, particularly user privacy. The company is seeking guidance from regulatory bodies on how to align Apple Intelligence with the DMA’s requirements. Until a resolution is found, European customers will have to make do with a less advanced version of the iPhone 16 Pro.

As the technology sector adjusts to evolving regulations, it remains to be seen how Apple and other companies will address the challenges posed by the Digital Markets Act.