Apple Inc (NASDAQ:AAPL, ETR:APC) and Google parent Alphabet Inc (NASDAQ:GOOG) have been told by the European Union that they have both failed to operate with the bloc's Digital Markets Act.
The pair are the first to be told by the EU's executive arm how they must comply with the new rules, which took effect last year.
Apple was told by the European Commission to open up the operating system of its iPhones and other devices to allow access to competing software.
The EC said it has told Apple it has make two decisions, with legally binding requirements: the first is that the company must give device manufacturers and app developers improved access to nine iOS connectivity features, which are mainly used for connected devices such as smartwatches, headphones or TVs.
The second covers measures to improve "the transparency and effectiveness" by which Apple works with developers on the 'interoperability' with iPhone and iPad features, including improved access to technical documentation on features not yet available to third parties.
"As a result, connected devices of all brands will work better on iPhones. Device manufacturers will have new opportunities to bring innovative products to the market, improving the user experience for consumers based in Europe."
Separately, the EC said it has taken a "preliminary view" that Google search results are more favourable to parent company Alphabet’s own services, such as shopping, hotel booking, transport, or financial and sports results, compared to rival ones, breaching the requirement to treat third-party services in a “transparent, fair and non-discriminatory” way.
Alphabet will now be able to defend itself but if the preliminary views are ultimately confirmed, a "non-compliance" decision could result in a hefty fine.
For non-compliance with the DMA, companies can face fines of up to 10% of their global annual turnover.