The European Commission has approved NVIDIA's proposal to acquire Run:ai, an Israel-based IT management platform provider. He's pushing for Apple to improve interoperability between iOS and third-party devices.
NVIDIA supplies GPUs for data centers, while Run:ai supplies GPU orchestration software. These products must be compatible and it was thought that the acquisition could result in the companies intentionally hindering the compatibility of their respective products with competitors.
However, the Commission's investigation found that NVIDIA could not prevent its GPUs from being compatible with Run:ai's competitors' orchestration software due to the pervasive nature of the tools that ensure such compatibility. Additionally, Run:ai lacks a dominant position in the GPU orchestration software market, as many equivalent alternatives are available or can be built in-house. This led to the agreement being approved unconditionally.
NVIDIA's purchase of Run:ai aimed to improve customer satisfaction and efficiency
Big tech companies are rapidly investing in young AI startups to gain early control and capitalize on the AI boom. In particular, this can be seen through partnerships such as Microsoft and OpenAI, NVIDIA and Inflection AI, and Google and Anthropic.
However, these types of collaborations can lead to market dominance, making it difficult for other independent companies to raise funding, attract talent, or compete with the advanced technology and reach of the big players. Innovation within AI specifically depends on only a few elements, GPUs being one of them.
NVIDIA announced plans to purchase Run:ai in April “to help customers make more efficient use of their AI computing resources.” The Run:ai platform dynamically allocates GPU resources, whether on-premises, in public clouds, or at the edge, allowing businesses to get the most out of their hardware and reduce operating costs.
“Together with Run:ai, NVIDIA will enable customers to have a single fabric that accesses GPU solutions,” NVIDIA said in the acquisition announcement.
The two companies have been working together since around 2020. The deal is worth $700 million, according to TechCrunch, and NVIDIA currently has no plans to change Run:ai's business model.
Italy initially pointed the agreement to the EU Merger Regulation, which allows mergers that do not have an EU dimension but could affect trade and competition within the region. Although it did not meet EU or Italian turnover thresholds, at the time the Italian competition authority determined that the acquisition posed concrete risks to competition or met other conditions outlined in the Italian Competition Law.
SEE: UK investigates Alphabet's partnership with Anthropic over competition concerns
The EU continues to hold Apple accountable and propose interoperability measures for compliance with the Digital Markets Law
On December 19, the Commission proposed measures to improve interoperability between Apple's iOS and iPadOS and third-party devices, which is required by the DMA. Apple has expressed concern that granting access to its operating system could compromise user privacy.
The Commission's recommended measures include improving compatibility between iOS and device features such as smartwatches and headphones. These features include notifications, automatic Wi-Fi connections, AirPlay, AirDrop, and automatic Bluetooth audio switching.
The authority also suggests that Apple make its process for developers to request interoperability within iOS and iPadOS features more transparent and predictable. This involves providing clear information about its internal features and timely updates on the status of requests.
Apple says the measures will affect privacy and security
In response to the measures, Apple published a document outlining how granting access to its technology stack and therefore user data could compromise privacy and security. It also highlights how Meta Platforms has made 15 requests for access to Apple software tools, including messaging, iPhone mirroring, and connectivity to all of a user's Apple devices, under the DMA.
“If Apple were to grant all these requests, Facebook, Instagram and WhatsApp could allow Meta to read all their messages and emails on a user's device, see every phone call they make or receive, track every app they use. , scan all your photos, view your files and calendar events, record all your passwords, and more,” Apple wrote. “This is data that Apple itself has decided not to access to provide the greatest possible protection to users.”
Apple also noted that Meta “has been fined time and time again by regulators for privacy violations.” In 2019, Meta agreed to pay a $5 billion fine to the U.S. Federal Trade Commission to resolve a privacy investigation, including unauthorized sharing of user data with third parties. The Irish Data Protection Commission also fined him €1.2 billion in 2023 for violating the GDPR.
SEE: Meta offers less personalized ads for EU users to appease regulators
However, Meta has not taken this lying down. Meta Communications Director Andy Stone posted on X: “This is what Apple is really saying: They don't believe in interoperability. In fact, every time Apple is called out for anti-competitive behavior, they defend themselves on privacy grounds that have no basis in reality.”
The Commission is now gathering comments on the proposed measures, which may affect the final package presented to Apple.
Apple's current fight with the Digital Markets Law
The DMA has been a point of contention for Apple since its enactment in September 2022. On November 4, the Commission announced its investigation into whether Apple's iPadOS operating system complies with the legislation.
The DMA requirements apply only to the 24 core platform services offered by the seven “gatekeeper” companies, including Alphabet, Amazon, Apple, Booking, ByteDance, Meta and Microsoft. Guardians have a significant economic impact in the EU and more than 45 million monthly users in the region or more than 10,000 commercial users annually for at least three years.
iPadOS, along with the App Store, Safari, and iOS, is on the list of top platform services as it provides “an important gateway for enterprise users to reach end users.” However, platforms must comply with DMA requirements. iPadOS users should be able to choose their default web browser, use third-party app stores, and explore features with non-Apple accessories such as headphones and smart pens, among other conditions.
Interestingly, macOS is not considered a core platform service, meaning European Mac owners will be able to access Apple Intelligence when it launches. Apple has stated that it will not roll out its AI offering in the EU due to “regulatory uncertainties” caused by the DMA. However, an exception could be made since macOS does not have to comply.
On November 1, Apple published a report explaining the measures it has implemented in iPadOS to comply with the DMA. The Commission will now assess this to see if the measures are sufficient. However, Apple could be fined up to 10% of its global revenue if it is found to be in breach of the rule.
SEE: Apple must return €13 billion in unpaid taxes to Ireland, EU court rules
So far, the Cupertino giant has not given in to the legislation. In January, it said that accessing third-party apps on Apple devices presents security risks, including “malware, fraud and scams, illicit and harmful content.”
The European Commission launched three other investigations into Apple's WFD compliance last year.
In June, the company was accused of violating the DMA for several reasons, including failing to make it easier for developers to induce their customers to purchase out-of-app options that do not benefit Apple financially. It also launched a noncompliance investigation to determine whether Apple discourages developers from hosting their iOS apps on third-party platforms.
In August, Apple announced that it would allow EU users to remove pre-installed apps in iOS 18 to comply with the DMA. It also clarified the “browser choice screen” and expanded several default apps that can be replaced with third-party versions.
