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
Hyunsoo Rim

TIME names the “Architects of AI” as its Person of the Year for 2025

TIME just announced its Person of the Year… and it’s not a single person.  

The magazine selected the “Architects of AI” as its 2025 honoree, spotlighting the executives and engineers behind the year’s AI boom. One of the two covers features eight tech leaders perched on a steel beam — recreating the iconic “Lunch Atop a Skyscraper” photo from 1932 — including Meta’s Mark Zuckerberg, AMD’s Lisa Su, xAI’s Elon Musk, OpenAI’s Sam Altman, and Nvidia CEO Jensen Huang at the center, whose chips power many of today’s AI models.

Western Auctioneer with Two Fingers up and Gavel in Hand

As investors pick sides in Netflix vs. Paramount, analysts say a renewed Warner Bros. bidding war looks inevitable

Analysts at Bloomberg on Wednesday said Paramount’s WBD hostile takeover offer could go as high as $35 per share.

Netflix WBD CEOs

The Netflix-Warner Bros. deal now faces a wall of opposition

Netflix will owe Warner Bros. $5.8 billion in cash if the deal is terminated on antitrust grounds.

power
Jon Keegan

The New York Times, Chicago Tribune sue Perplexity

The New York Times is suing the AI search engine startup Perplexity, alleging repeated copyright violations.

In the complaint, the Times accuses Perplexity of scraping the company’s content and generating outputs that are “identical or substantially similar” to Times content:

“Upon information and belief, Perplexity has unlawfully copied, distributed, and displayed millions of copyrighted Times stories, videos, podcasts, images and other works to power its products and tools.”

The Times also alleges that Perplexity’s AI tool generates “hallucinations” and falsely attribute them to the Times, creating confusion that harms the company’s brand.

In a separate suit filed Thursday, the Chicago Tribune accused Perplexity of similar copyright violations.

Perplexity’s “answer engine” made early inroads in an attempt to replace traditional web searches with AI-powered responses, but its larger competitors such as OpenAI, Google, and Anthropic have been adding similar features. OpenAI recently released its own AI-powered web browser, ChatGPT Atlas, which challenges Perplexity’s Comet browser.

Jesse Dwyer, Head of Communication for Perplexity told Sherwood News in a statement:

“Publishers have been suing new tech companies for a hundred years, starting with radio, TV, the internet, social media and now AI. Fortunately it’s never worked, or we’d all be talking about this by telegraph.”

“Upon information and belief, Perplexity has unlawfully copied, distributed, and displayed millions of copyrighted Times stories, videos, podcasts, images and other works to power its products and tools.”

The Times also alleges that Perplexity’s AI tool generates “hallucinations” and falsely attribute them to the Times, creating confusion that harms the company’s brand.

In a separate suit filed Thursday, the Chicago Tribune accused Perplexity of similar copyright violations.

Perplexity’s “answer engine” made early inroads in an attempt to replace traditional web searches with AI-powered responses, but its larger competitors such as OpenAI, Google, and Anthropic have been adding similar features. OpenAI recently released its own AI-powered web browser, ChatGPT Atlas, which challenges Perplexity’s Comet browser.

Jesse Dwyer, Head of Communication for Perplexity told Sherwood News in a statement:

“Publishers have been suing new tech companies for a hundred years, starting with radio, TV, the internet, social media and now AI. Fortunately it’s never worked, or we’d all be talking about this by telegraph.”

power
Jon Keegan

European regulators will examine if Apple’s maps and ads businesses require stricter oversight

Apple has notified European regulators that its Apple Maps and Apple Ads platforms meet the threshold to be called “gatekeepers” under the European Commission’s Digital Markets Act, the European Commission said.

European antitrust regulators will now examine if the tech giant’s Maps and Ads units should be subject to stricter regulation. According to the DMA, when a platform reaches 45 million monthly active users and a market cap of €75 billion ($79 billion), it triggers the “gatekeeper” designation and additional rules apply.

While Apple notified regulators that the threshold has been met, it is pushing back on the designation, saying in a rebuttal to rule makers that the platforms are actually relatively small compared to the competition in Europe and should be excluded. The EC has 45 working days to make a final determination about the designation, and Apple would have six months to comply, Reuters reported.

European antitrust regulators will now examine if the tech giant’s Maps and Ads units should be subject to stricter regulation. According to the DMA, when a platform reaches 45 million monthly active users and a market cap of €75 billion ($79 billion), it triggers the “gatekeeper” designation and additional rules apply.

While Apple notified regulators that the threshold has been met, it is pushing back on the designation, saying in a rebuttal to rule makers that the platforms are actually relatively small compared to the competition in Europe and should be excluded. The EC has 45 working days to make a final determination about the designation, and Apple would have six months to comply, Reuters reported.

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.