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> Apple is worried that other parties having the same level of access that Apple has today would create privacy issues

But this is solvable. The problem is the work it takes to solve it isn’t worth the hit to time to market. (And possibly even the cost.)

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> But this is solvable

That's the crux of my point; Apple could have solved this on day zero if they had a consumer-centered threat-model and/or considered user data to be a liability rather than a hook for service subscriptions.

> The problem is the work it takes to solve it isn’t worth the hit to time to market. (And possibly even the cost.)

I don't consider this to be a problem, but the DMA working as intended and preventing gatekeepers from competing unfairly.

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> This is because Apple's current privacy posture is "Trust Apple with your data" rather than "Trust no one with your data - including Apple"

I think that's uncharitable. Apple prefers not to have the data either, hence the preference for on-device processing.

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