Apple’s €500M EU Fine and DMA Battle Could Limit Features Like AirDrop and Apple Watch in Europe

Back in April, Apple was hit with a €500 million fine by the European Commission (EC) over alleged breaches of the Digital Markets Act (DMA). Apple has since appealed the decision, arguing that the new interoperability requirements imposed by the EU are unreasonable and pose significant privacy risks.

"John Gruber of Daring Fireball recently shared Apple’s official statement on the matter. The statement emphasized that Apple's ecosystem is built on seamless integration and user privacy. However, the company warned that the DMA rules could “severely limit” its ability to bring new features and innovations to its European customers—potentially leading to an “inferior user experience.”

A critical concern raised by Apple is the requirement to grant third-party apps access to system-level features, such as iOS notifications, background tasks, and even replacing AirDrop as the default file-sharing option. According to Apple, these demands compromise user privacy and could expose sensitive user data to external companies—data Apple itself does not access.

John Gruber speculates that instead of compromising its privacy-first approach, Apple may remove or limit key features like AirDrop for EU users. There’s also the possibility—though less likely—that Apple might stop selling devices like the Apple Watch or AirPods in the EU altogether due to compliance challenges.

While Apple’s wearables business is too lucrative to abandon easily, the appeal and future outcomes of this legal battle will likely shape how Apple operates in the EU going forward. All eyes are on Cupertino as the tech giant defends its ecosystem against evolving regulatory pressures.