Cupertino, May 13, 2026, 12:01 (PDT)
Apple Inc. jumped into Europe’s battle with Alphabet’s Google on Wednesday, flagging EU draft rules that would force Android to open up to competing AI services. Apple, in a filing seen by Reuters, labeled the draft an “urgent and serious concern” and warned it could bring “profound risks” for users and devices. “The EC is redesigning an OS,” Apple argued, referring to operating system. Reuters
Timing is key here. Brussels is pushing the Digital Markets Act — that’s the EU’s effort to rein in powerful tech “gatekeepers” — beyond just app stores and browser selection. Now, they’re steering it into the territory of AI assistants, those tools that respond to wake words, pick up on context and operate across multiple apps.
The Commission is pushing forward with measures aimed at opening up Android apps to rival AI services—think sending emails, ordering food, sharing photos. Feedback from stakeholders is due by May 13. According to the Commission’s case summary, a final call is expected by July 27.
Regulators are pitching this battle as one about consumer choice. Teresa Ribera, competition chief at the EU, called the measures a way to “give more choice.” Henna Virkkunen, who leads technology policy for the bloc, emphasized that “interoperability is key” now that AI is moving to the heart of mobile devices. Digital Strategy
Apple and Google remain fierce rivals in phones, software, and AI. Yet on this front, their interests line up: each controls an operating system positioned between users, hardware, apps, and data. Should Google be required to open up Android further to competing agents, Apple will likely face demands for the same on iOS, iPadOS, and macOS.
Apple shares pushed higher, up 1.6% at $299.47, after climbing as high as $300.90 earlier in the session. The company’s market cap hovered around $4.41 trillion. Investors held their ground instead of selling on the news.
China is the other major factor in play. According to a White House official cited by Reuters, Tim Cook is one of 16 executives joining President Donald Trump on his trip to China this week. Talks are likely to center on trade forums, business agreements, and whether to prolong a rare-earths truce.
Prediction markets aren’t betting on a sweeping solution just yet. Polymarket’s contract for a U.S.-China tariff agreement by May 31 is showing 73% odds, based on roughly $42,200 in trades—a narrow market, but enough to suggest some players are still eyeing the possibility of a late-month deal.
Apple isn’t exactly limping into the regulatory fray. Second-quarter revenue landed at $111.2 billion—a 17% jump year-over-year—with earnings of $2.01 per share. CEO Tim Cook dubbed it the “best March quarter ever.” The board signed off on another $100 billion for share repurchases. Apple
Morningstar’s David Sekera struck a cooler note. He pointed to iPhone sales—particularly in China—as the main driver behind Apple’s higher revenue, and flagged the gross margin at 49.3%. Sekera stuck to his $270 per share fair value, and tagged this earnings report as “no surprises here.” Morningstar
The risks aren’t just hypothetical. Apple’s most recent 10-Q spells it out: shifting macro conditions, tariffs, regulatory probes, and tangled legal shifts all weigh on its results and share price. Litigation? The company reminds investors, outcomes are unpredictable.
Apple’s stance this week isn’t ambiguous: growth looks solid, shares sit near highs, and the company is urging regulators to hold off before greenlighting deeper AI agent access within the phone stack. Whether that’s genuine engineering caution or just a move to maintain market power—Europe could be the one to call it.
