For years, Apple and Google competed mainly on hardware, software and their broader ecosystems.
Artificial intelligence (AI) assistants are now emerging as a major differentiator between smartphone platforms. As these assistants become more capable, regulators are increasingly examining whether companies controlling mobile operating systems could gain an unfair advantage.
The European Union's latest measures under the Digital Markets Act require Google to make Android more open to competing AI assistants. The rules also require the company to share certain search-related data with rivals to promote a more competitive digital ecosystem.
The Digital Markets Act was introduced to limit the dominance of large online platforms designated as "gatekeepers". It seeks to ensure that companies controlling major digital ecosystems do not prevent competitors from reaching consumers.
Although the legislation initially focused on areas such as app stores, browsers and messaging services, its scope is increasingly extending to AI.
As AI assistants become a primary way for users to interact with smartphones, regulators believe competition in this area could become as important as competition in search engines or app marketplaces.
What the Digital Markets Act means
The Digital Markets Act is one of Europe's main attempts to regulate large digital platforms.
According to the
European Commission, the legislation imposes obligations on companies identified as digital gatekeepers. These measures are intended to prevent anti-competitive practices and allow smaller companies to compete on a more level playing field.
The European Commission has set a July 2027 deadline for Google to give rival AI assistants broader access to Android under the Digital Markets Act, which took effect in 2023.
The Commission argues that opening Android to competing AI services will promote fairer competition as AI becomes more central to smartphones.
Under the rules, Google will have to allow greater interoperability between Android and third-party AI assistants, making it easier for users to choose alternatives instead of relying only on Google's services.
The rules also require Google to share parts of its search data under specific conditions, giving competitors more opportunities to improve their AI systems and search capabilities.
According to Omdia, the regulation will cover nearly 427 million iPhones and Android devices across the European Union, giving the bloc significant influence over how global technology companies develop and deploy AI features.
Google prepares to adapt Android
Google's strategy appears to focus on adapting Android without surrendering its competitive advantage. According to Reuters, the company is preparing to comply with the EU's interoperability requirements while continuing to integrate Gemini AI across Android devices.
The challenge for Google is to maintain a seamless user experience while allowing competing AI assistants to access deeper parts of the Android ecosystem. This could eventually allow users to choose alternatives such as ChatGPT, Perplexity or other AI assistants for different smartphone functions instead of relying solely on Gemini.
For consumers, greater choice could be one of the biggest outcomes of the regulation.
For Google, maintaining user loyalty while complying with the new obligations could become an increasingly important strategic challenge.
"The EC is on the wrong track with DMA 6.7 and is steering towards a much worse experience for Android users," said Sameer Samat, president of Android Ecosystem at Google.
Samat argued that Android already gives users and device makers significant flexibility by allowing multiple digital assistants to be preloaded and enabling users to switch to an assistant of their choice. He said the European Commission's proposed requirements under Article 6.7 of the Digital Markets Act would add unnecessary technical complexity, making it harder for Google to build secure and seamless AI experiences.
Apple takes a more cautious approach
Apple has adopted a more cautious response to the European Union's AI rules. At the Worldwide Developers Conference 2026, the company announced that Siri AI would not launch in the European Union alongside iOS 27 and iPadOS 27, citing the European Commission's interpretation of the Digital Markets Act.
According to Apple, Siri AI is designed around on-device processing and Private Cloud Compute, allowing AI features to work while keeping user data private.
The company said EU regulators rejected its proposals for introducing Siri AI while safely supporting third-party virtual assistants.
Apple argued that, under the Commission's interpretation of the Digital Markets Act, it would have to allow rival assistants direct access to users' personal data and greater control over installed applications without what it described as the necessary privacy and security safeguards.
Apple said it would continue working to bring Siri AI to European users but did not provide a timeline for its launch. It added that it could not compromise the privacy and security standards underpinning its AI system.
Unlike Google, whose Android operating system is designed as a more open platform, Apple follows a tightly integrated model in which hardware, software and services are developed together.
That difference in platform strategy helps explain why the two companies are responding differently to the EU's AI interoperability requirements.
New opportunities for rival AI assistants
One of the main outcomes of the EU's rules could be a more level playing field for independent AI developers. Companies such as OpenAI, Perplexity and Anthropic have developed advanced AI assistants, but their ability to integrate deeply into smartphone operating systems has traditionally been limited because Apple and Google control the main software interfaces.
By requiring greater interoperability, the European Union is seeking to lower these barriers and give users more freedom to choose the AI services they prefer.
According to Reuters, the Digital Markets Act could make it easier for third-party AI assistants to interact with Android devices, creating opportunities for greater competition and innovation.
If implemented effectively, users may eventually be able to select their preferred AI assistant for tasks such as messaging, internet search, scheduling and content creation instead of relying solely on the platform owner's default service.
While this could encourage innovation by allowing companies to compete on the quality of their AI models, broader access would also require strong privacy and security safeguards to protect user data across multiple AI providers.
What the rules mean for smartphone makers
The European Union's decisions could have an impact beyond the region. European digital regulations, including the General Data Protection Regulation (GDPR), have previously influenced technology practices worldwide because maintaining separate systems for different regions can be costly and operationally complex.
If the latest AI-related requirements prove effective, regulators in other jurisdictions could eventually consider similar measures. For smartphone manufacturers, this could mean designing AI features that comply with multiple regulatory frameworks rather than a single global standard.
Developers may also need to build AI applications that work across more open ecosystems while meeting different privacy and security requirements. The result could be a smartphone industry in which regulatory compliance becomes as important as technical innovation when new AI features are introduced.
AI competition moves beyond technology
The rivalry between Apple and Google is expanding beyond hardware and AI capabilities to include regulatory compliance. As governments introduce stricter digital market rules, companies increasingly have to balance product innovation with legal obligations.
The European Union's Digital Markets Act is emerging as an important factor shaping the rollout of AI features and digital assistants. While the rules aim to improve interoperability and consumer choice, they also require technology companies to redesign products and platform experiences to meet regulatory requirements.
As AI becomes central to smartphones and digital services, regulation is likely to play a bigger role in determining how new technologies are developed and brought to market.
The next phase of AI competition may be driven not only by technological advances, but also by the policies that govern them.
 "How EU's DMA puts Apple and Google on different paths for smartphone AI")
