Interoperability initiatives: The push to make everything compatible

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  Quantumrun Foresight
• January 25, 2023

Insight summary

The various platforms we use to access the internet, power our homes, and conduct day-to-day activities are not designed to work together. Big tech companies, such as Google and Apple, often use different operating systems (OS) for their many devices and ecosystems, which some regulators argue is unfair to other businesses.

Interoperability initiatives context

Throughout the 2010s, regulators and consumers have been criticizing large tech companies for promoting closed ecosystems that throttle innovation and make it impossible for small firms to compete. As a result, some technology and device manufacturing firms are collaborating to make it easier for consumers to use their devices. 

In 2019, Amazon, Apple, Google, and the Zigbee Alliance teamed up to create a new working group. The goal was to develop and promote a new connectivity standard to increase compatibility among smart home products. Security would be one of the critical design features of this new standard. Zigbee Alliance companies, such as IKEA, NXP Semiconductors, Samsung SmartThings, and Silicon Labs, also committed to joining the working group and are contributing to the project.

The Connected Home over Internet Protocol (IP) project aims to make development easier for manufacturers and compatibility higher for consumers. The project rests on the idea that smart home devices should be secure, dependable, and easy to use. By working with IP, the goal is to allow communication between smart home devices, mobile apps, and cloud services while defining a set of IP-based networking technologies that can certify devices.

Another interoperability initiative is the Fast Healthcare Interoperability Resources (FHIR) framework, which standardized healthcare data to ensure everyone can access accurate information. The FHIR builds off the previous standards and provides an open-source solution to easily move electronic health records (EHRs) across systems.

Disruptive impact

Some antitrust probes of big tech companies could be avoided if these companies were given incentives to make their protocols and hardware interoperable. For example, the Augmenting Compatibility and Competition by Enabling Services Switching (ACCESS) Act, passed by the US Senate in 2021, would require tech companies to provide application programming interface (API) tools allowing users to import their information into different platforms. 

This law would allow smaller companies to use permissioned data more efficiently. If the tech giants are willing to cooperate, interoperability and data portability could eventually lead to new business opportunities and a bigger device ecosystem.

The European Union (EU) has also launched directives to force tech companies to adopt universal systems or protocols. In 2022, the EU Parliament passed a law requiring all smartphones, tablets, and cameras sold in the EU by 2024 to have a USB Type-C charging port. The obligation will begin for laptops in spring 2026. Apple is the hardest hit as it has a proprietary charging cable that it has clung to since 2012. 

Nonetheless, consumers are rejoicing over the increasing interoperability laws and initiatives as they eliminate unnecessary costs and inconveniences. Cross-compatibility will also stop/limit the industry practice of constantly changing charging ports or retiring certain functions to force consumers to upgrade. The Right to Repair Movement will also benefit, as consumers can now easily repair devices because of standardized components and protocols.

Implications of interoperability initiatives

Wider implications of interoperability initiatives may include: 

• More inclusive digital ecosystems that will allow greater flexibility for consumers to choose devices that best fit their needs and budget.
• Companies creating more universal ports and connectivity features that would allow different devices to work together regardless of brand.
• More interoperability laws that would force brands to adopt universal protocols or risk being banned from selling in certain territories.
• Smart home systems that are safer because consumer data would be treated with the same level of cybersecurity across different platforms.
• Population-scale productivity improvements as AI virtual assistants can access a greater variety of smart devices to service consumer needs.  
• More innovation as newer companies build on existing standards and protocols to develop better features or less energy-consuming functionalities.

Questions to consider

• How have you benefited from interoperability as a consumer?
• What other ways will interoperability make it easier for you as a device owner?