Apple (NASDAQ:AAPL) announced on Friday that it will not release its new AI technologies, including Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing, in the European Union this year. The decision stems from concerns that the EU’s Digital Markets Act (DMA) could compromise the security of its products and services.

Apple expressed that the DMA’s interoperability requirements might force the company to weaken the integrity of its products, potentially risking user privacy and data security. The DMA mandates that dominant tech platforms, designated as “gatekeepers,” adhere to a set of regulations designed to ensure fair competition. These include prohibitions on favoring their own services over competitors’, restrictions on combining personal data across services, and requirements to allow users to download apps from rival platforms.

The European Commission responded, stating that gatekeepers are welcome to offer their services in Europe as long as they comply with the rules intended to ensure fair competition.

Apple Intelligence, a suite of AI services, was the centerpiece of Apple’s recent Worldwide Developers Conference. The technology includes features to summarize text, create original images, and retrieve relevant data, along with an upgraded version of Siri, Apple’s digital assistant. These features have driven a recent rally in Apple’s stock, which has increased by about 9% since the conference, bringing the company’s valuation to over $3.2 trillion.

Apple’s decision means that consumers in all 27 EU countries, including France, Germany, Spain, and Italy, will not have access to these new AI technologies for now. The software will launch elsewhere this fall, but only on a subset of Apple devices and in American English. This withholding of technology might frustrate consumers in the region, potentially putting pressure on regulators.

In addition to Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing will also be held back. iPhone Mirroring allows users to control their device virtually on a Mac display, while SharePlay Screen Sharing enables screen sharing from an iPad or iPhone to another device for remote technical support.

Apple has had previous clashes with the EU over efforts to regulate the market power of Big Tech. The company is expected to receive a formal warning from EU regulators under the DMA for allegedly blocking apps from steering users to cheaper subscription deals on the web, a practice for which it has already been fined €1.8 billion ($1.9 billion).

The rollout of Apple Intelligence faces challenges in other parts of the world as well. In China, where OpenAI’s ChatGPT is banned, Apple will need a different chatbot provider. The company is considering partnerships with firms like Baidu Inc. and Alibaba Group Holding Ltd.

Overall, Apple’s decision to delay the rollout in the EU highlights the complex regulatory environment facing tech companies and the potential impact on global consumers.

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