Power
Apple
Getty Images

How regulators have chipped away at Apple's walled garden

A running list of the ways Apple has had to scale back its ecosystem lock.

Rani Molla

Regulators, especially those in the European Union, have been slowly forcing Apple to dismantle its so-called walled garden: the iPhone maker’s closed ecosystem of hardware and software that’s notoriously difficult to leave.

Most recently, that’s meant Apple will allow iPhone and iPad users in the EU to delete the company’s flagship apps, including Safari, the App Store, and even its photo and messaging apps from their devices later this year. Users will be able to swap those out for third-party apps as part of Apple’s effort to get on the right side of the EU’s Digital Market Act (and avoid a massive fine), which aims to give smaller tech companies more of a shot to compete with Apple’s software.

While users were already able to swap out the native browser and other apps, the latest change will make the option more apparent. That’s important because the vast majority of people stick with the software they have because it’s simply the path of least resistance.

These moves are a big deal for Apple, which makes a big and growing chunk of its revenue off of its so-called Services division, which reported $24 billion in revenue in the latest quarter. That includes fees from App Store and payment transactions as well as the tens of billions a year Apple gets from its deal with Google, which pays to be the exclusive search engine powering Safari on iPhones.

They are also part of a steady stream of announcements that represent a slow but steady dismantling of Apple’s walled garden.

Last week, Fortnite maker Epic Games was finally able to launch an app store available to iPhone users in Europe.

Apple also announced last week that users in the US, Australia, Brazil, Canada, Japan, New Zealand, and the UK, will soon be able to use alternate near-field communication payment apps to Apple Pay.

More Power

See all Power
power

OpenAI is reportedly working with Pentagon to hash out guardrails amid Anthropic standoff over AI safety

OpenAI CEO Sam Altman said the company is working with the Pentagon to negotiate safety guardrails for AI models used in the battlefield, which comes as one of its top competitors, Anthropic, is at a standoff with the government.

According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”

Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”

Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.

Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.

According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”

Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”

Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.

Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.

power
Jon Keegan

Report: Anthropic CEO Amodei meeting with Hegseth at the Pentagon as tensions mount

Anthropic CEO Dario Amodei has been summoned to meet with Defense Secretary Pete Hegseth at the Pentagon on Tuesday, according to a report from Axios. Tensions are running high between the Trump administration and Anthropic, as the startup’s surveillance restrictions on the use of its AI are reportedly causing outrage within the Pentagon.

Last month’s attack on Venezuela that led to the capture of Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Per the report, the Pentagon is considering effectively blacklisting Anthropic’s AI from government work if it doesn’t capitulate to the administration’s terms.

Antagonizing the Trump administration could cause Anthropic to face potential regulatory hurdles as it races toward an IPO this year. The company recently hired former Microsoft CFO Chris Liddel to its board, who formerly served as deputy White House chief of staff in the first Trump administration.

Last month’s attack on Venezuela that led to the capture of Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Per the report, the Pentagon is considering effectively blacklisting Anthropic’s AI from government work if it doesn’t capitulate to the administration’s terms.

Antagonizing the Trump administration could cause Anthropic to face potential regulatory hurdles as it races toward an IPO this year. The company recently hired former Microsoft CFO Chris Liddel to its board, who formerly served as deputy White House chief of staff in the first Trump administration.

power
Jon Keegan

Anthropic donates $20 million to pro-AI regulation PAC

The war to build a better AI model may be mostly happening in Silicon Valley, but now another important front has opened: Washington, DC.

Anthropic announced a $20 million donation to Public First Action, a new super PAC that advocates for AI policies and regulations that prioritize public safety. The PAC describes itself as “a counterforce that will defend the public interest against those who aim to buy their way out of sensible rule-making.”

The move is seen as a counter to OpenAI’s growing investments in PACs that argue for less AI regulation.

OpenAI recently donated to Leading the Future PAC, which has received over $50 million from the family of OpenAI president and cofounder Greg Brockman, and the VC firm Andreessen Horowitz. The PAC says it is focused on “identifying, maintaining, and growing pro-AI candidates in order to support an AI innovation policy agenda at the state and federal level.”

OpenAI’s Brockman and his wife, Anna, recently donated a total of $25 million to the pro-Trump MAGA, INC. PAC.

OpenAI recently donated to Leading the Future PAC, which has received over $50 million from the family of OpenAI president and cofounder Greg Brockman, and the VC firm Andreessen Horowitz. The PAC says it is focused on “identifying, maintaining, and growing pro-AI candidates in order to support an AI innovation policy agenda at the state and federal level.”

OpenAI’s Brockman and his wife, Anna, recently donated a total of $25 million to the pro-Trump MAGA, INC. PAC.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.