Key Points
EU expands DMA rules to open AI assistants on Android and iPhone to greater competition.
Google and Apple warn that the proposed changes could weaken user privacy and device security.
More than 5 billion smartphones could be affected by new AI interoperability requirements.
New EU deadlines in 2027 could reshape the future of Gemini, Siri, and rival AI assistants.
On 16 July 2026, the European Union increased its scrutiny of Google and Apple with proposed rules that could change how AI assistants operate on smartphones. The changes could affect more than 5 billion active devices worldwide and reshape competition between Gemini, Siri, and other AI assistants.
The EU says the proposals will give consumers more choice. Google and Apple argue they could weaken privacy and security protections. Here’s why the dispute matters for users, developers, and investors.
Why is the EU challenging Google and Apple Over AI Assistants?
What is changing under the Digital Markets Act?
On 16 July 2026, the European Commission introduced new Digital Markets Act (DMA) proposals covering AI assistants. Under the plan, Google would have to open important Android features to competing AI services. It would also need to make certain search data available under strict privacy safeguards.
The Commission says these measures are intended to reduce the market power of large technology companies while giving consumers more freedom to choose the AI services they want.
What does the EU want from Google and Apple?
The EU wants competing AI assistants to access many of the same smartphone functions available to Gemini and Siri. That includes voice activation, system-level actions, and deeper integration with Android features. Regulators believe users should be free to choose their preferred AI assistant without being limited by the default software installed on their devices.
Google’s Response: Privacy, Security, and Competition Concerns
Why is Google resisting the new rules?
Google says the proposed rules could expose Android devices to new privacy and security risks. According to the company, giving outside developers greater access to core system functions could increase the chances of misuse or cyberattacks.
The current timetable requires Google to begin sharing qualifying search data from January 2027, while broader Android interoperability rules are expected to take effect in July 2027. Google says it supports fair competition but believes stronger safeguards are needed before these changes are introduced.
How could Gemini be affected?
Gemini currently benefits from deep integration across Android devices. If competing AI assistants receive the same level of access, users could switch more easily to ChatGPT, Perplexity, Claude, or other alternatives. That would reduce one of Google’s biggest advantages within the Android ecosystem and increase competition among AI assistant providers.
Apple’s Position and Why Siri Is Part of the Debate?
Why is Apple objecting to the EU’s approach?
Apple has argued that broader interoperability requirements could put user privacy and security at risk. The company says opening core iPhone features to third-party AI systems requires stronger protections than those proposed by the EU. In June 2026, EU officials rejected Apple’s request for additional flexibility, saying the company had not provided an interoperability solution that met DMA requirements.
What does this mean for Siri and Apple Intelligence?
Apple has delayed the release of its upgraded Siri experience in the European Union. As a result, users in Europe may receive new Apple Intelligence features later than customers in other markets. The delay shows how regulatory requirements are affecting Apple’s AI rollout across the region.
What Does the AI Battle Mean for Smartphone Users and Developers?
Will users get more AI choices?
If the proposals become law, Android users could choose from a wider range of AI assistants with system-level access similar to Gemini. That could make AI tools more useful, encourage stronger competition, and give consumers greater control over how they use AI on their smartphones.
What challenges lie ahead for developers?
Developers will need to meet strict privacy, security, and compliance requirements before accessing Android’s deeper system features. Even so, the proposed rules could give AI startups a better chance to compete with larger companies. Businesses can also use an AI stock analysis tool to monitor how regulatory developments may affect major technology companies and market sentiment.
What Investors Should Watch Next?
Investors will be watching how Google responds to the new requirements, whether Apple changes its AI strategy in Europe, and how aggressively the EU enforces the DMA. The outcome could influence competition in mobile AI, cloud services, and digital search. Any legal disputes or compliance delays may also affect investor confidence in Alphabet, Apple, and other companies developing artificial intelligence products.
Conclusion
The EU’s proposed rules could change how AI assistants work on smartphones across Europe. While regulators want to increase competition and give users more choice, Google and Apple continue to argue that privacy and security should come first. With compliance deadlines approaching in 2027, the decisions made over the next year will shape how AI assistants compete on Android and iPhone devices.
Disclaimer:
The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.
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