Llama, Gemini, now iPhone - the impact of EU's tech regulations for consumers

Between 2019 and 2024, the European Commission adopted a series of new regulations for the tech sector, including the Digital Services Act, the Digital Markets Act, the Artificial Intelligence Act, and many others. 

These measures aim to shape the future of the digital landscape in Europe, but, naturally, they also have a significant impact on the availability of certain services within the European Union. As a result, major tech companies are forced to either delay the release of some of their products in the EU or choose not to launch them in the EU altogether.

Llama, Gemini AI assistant 

In July 2024, Meta announced it would not release its new AI model, Llama, in the EU. Llama, which operates with text, video, and other media, is being withheld due to the challenges posed by the AI Act and GDPR regulations, which create a complex compliance environment that Meta has decided to sidestep for now.

Similarly, Google has continuously delayed the release of its AI assistant, Gemini, in the European Union due to various regulatory constraints. 

Apple vs. EU: an overview 

Apple’s upcoming iPhone 16 model, heavily reliant on AI and virtual assistants, is expected to launch in Europe later than in other regions—possibly in 2025. The primary reason cited is Apple’s ongoing disagreements with the European Commission in the context of the Digital Markets Act (DMA).

DMA has heavily affected Apple until now. DMA’s requirements pushed Apple to allow users to delete traditionally pre-installed apps, such as Apple Mail, Safari, and the App Store, from their hardware. This move, aimed at breaking what the Commission sees as anti-competitive practices, represents a major shift for Apple’s operating model.

Another front in the Commission's battle against Apple has been taxation. Recently, news emerged that the European Commission won a case against Apple regarding its tax arrangements with Ireland, a country that hosts many major tech firms.

Broader impact of tech regulations: businesses, regulators & consumers 

The impact of European tech regulations on European consumers is likely to grow further. 

While acts like the DSA and DMA target large companies with over 45 million users per month, regulations such as the GDPR and the AI Act affect businesses of all sizes, including smaller firms and startups. Compliance challenges and costs will be felt across the board, especially once the startups start to scale.

The increased volume of new regulations also means more work for EU Member States’ ministries, agencies, and oversight bodies. Even in countries with cooperative regulators, there is a growing concern about human resource constraints and the sheer scope of regulatory responsibilities.

Lastly, more regulations mean higher compliance costs for businesses, potentially leading to increased prices for services and delayed or restricted access to innovative products.

Future outlook

The future doesn’t look particularly promising in terms of EU’s tech regulatory relief. Although both businesses and EU member states have called on the new European Commission to focus on implementing existing regulations rather than introducing new ones, this plea doesn't seem to be heard - at least for now.

While Mario Draghi was applauded by the tech community for criticizing the EU for overregulation of tech, which negatively impacts European innovators, his own proposals, along with the political guidelines by Ursula von der Leyen, former Italian Prime Minister Enrico Letta, suggest a continued push for reforms in the tech and telecommunications sectors.

Upcoming regulatory ambitions might include advertising restrictions on social media and search engines, limitations on "infinite scrolling," and discussions—primarily led by Western states—about reducing the number of mobile network operators in the EU.