The European Commission has approved NVIDIA’s proposed acquisition of Run:ai, an Israel-based provider of a desktop management platform. It urges Apple to improve interoperability between iOS and third-party devices.

NVIDIA provides GPUs for data centers, while Run:ai provides GPU orchestration software. These products must be compatible, and it is believed that the acquisition could result in the companies deliberately hindering their respective products’ compatibility with competitors.

However, the Commission’s investigation found that NVIDIA could not prevent its GPUs from being compatible with the orchestration software of Run:ai’s competitors due to the widespread nature of tools that ensure such compatibility. Furthermore, Run:ai does not have a dominant position in the GPU orchestration software market, as many equivalent alternatives are available or can be built in-house. This resulted in the transaction being unconditionally approved.

NVIDIA’s purchase of Run:ai was intended to improve customer satisfaction, efficiency

Big tech firms are quickly investing in young AI startups to gain early control and take advantage of the AI ​​boom. This can especially be seen through partnerships such as Microsoft and OpenAI, NVIDIA and Inflection AIand Google and Anthropic.

However, such collaborations can lead to market dominance, making it harder for other independent companies to get 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, with GPUs being one of them.

NVIDIA announced its plans to buy Run:ai in April “to help customers use their AI computing resources more efficiently.” Run:ai’s platform dynamically allocates GPU resources, whether on-premises, in public clouds or at the edge, allowing companies 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 accessing 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 TechCrunchand NVIDIA has no current plans to change Run:ai’s business model.

Initially, Italy marked the deal to the EU Merger Regulation, which allows for mergers that do not have an EU dimension but could affect trade and competition within the region. Although it did not meet the EU or Italy’s turnover thresholds, the Italian competition authority determined at the time that the acquisition either posed concrete risks to competition or met other conditions set out in the Italian Competition Law.

SEE: UK probes Alphabet’s partnership with anthropic concerns over competition

EU continues to hold Apple accountable and proposes interoperability measures for compliance with the Digital Markets Act

On December 19, the Commission proposed measures to improve interoperability between Apple’s iOS and iPadOS and third-party devices, which is required under the DMA. Apple has expressed concern that granting access to its operating system could compromise users’ privacy.

The Commission’s recommended measures include improving compatibility between iOS and features of devices such as smartwatches and earbuds. 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 status updates for requests.

Apple says measures will affect privacy and security

In response to the measures, Apple has a document detailing how access to its technology stack and therefore user data could compromise privacy and security. It also highlights how Meta Platforms made 15 requests for access to Apple’s 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 enable Meta to read all their messages and emails on a user’s device, see every phone call they make or receive, every app they use track their usage. , scan all their photos, view their calendar events, log all their passwords,” Apple wrote. “This is data that Apple itself has chosen not to access strongest possible protection to users.”

Apple also emphasized that Meta “has been repeatedly fined by regulators for privacy violations.” In 2019, Meta agreed to a $5 billion fine to the US Federal Trade Commission to resolve a privacy investigation, including the unauthorized sharing of user data with third parties. It was too €1.2 billion fined in 2023 by the Irish Data Protection Commission for breaching GDPR.

SEE: Meta offers less personalized ads for EU users to appease regulators

However, Meta did not take it easy. Meta Communications Director Andy Stone placed on X: “Here’s what Apple actually says: they don’t believe in interoperability. In fact, every time Apple is called out for competitive behavior, they defend themselves on privacy grounds that have no basis in reality.”

The Commission is now collecting feedback on its proposed measures, which could influence the final set put to Apple.

Apple’s ongoing struggle with the Digital Markets Act

The DMA has been a point of contention for Apple since it went live in September 2022. On November 4, the Commission announced its investigation into Apple’s iPadOS operating system comply with the legislation.

The DMA’s requirements only apply to the 24 core platform services hosted by the seven “gatekeeper” companies, including Alphabet, Amazon, Apple, Booking, ByteDance, Meta and Microsoft. The gatekeepers did a major economic impact in the EU. and more than 45 million monthly users in the region or more than 10,000 annual business users for at least three years.

iPadOS, along with the App Store, Safari and iOS, is on the list of core platform services it provides “an important gateway for business users to reach end users.” However, the platforms must meet the DMA’s 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.

Interestingly, macOS is not considered a core platform service, meaning that European Mac owners may be able to access Apple Intelligence when it is released. Apple claimed it would not roll out its AI offering in the EU due to “regulatory uncertainties” caused by the DMA. However, an exception can be made as macOS does not have to comply.

On November 1, Apple published a report explaining the measures it implemented in iPadOS to comply with the DMA. The Commission will now assess it to see if the measures are sufficient. However, Apple could be fined up to 10% of its global turnover if found to be in breach.

SEE: Apple must repay €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 poses security risks, including “malware, fraud and scams, illegal and harmful content.”

The European Commission launched three other investigations into Apple’s DMA compliance last year.

In June, the company was charged with violating the DMA for several reasons, including not making it easy for developers to send their customers to buy options outside of the app that don’t benefit Apple financially. It also has a non-compliance investigation or Apple discourages developers from offering their iOS apps on third-party platforms.

In August, Apple announced that it would allow EU users to delete pre-installed apps on iOS 18 to comply with the DMA. It also clarified the “browser selection screen” and expanded several default apps that can be replaced with third-party versions.