Apple on Wednesday lost its challenge against key European Union rules that classify its app stores and iOS operating system as “gatekeepers” subject to obligations aimed at providing competitors with more opportunities to compete.
The EU’s Digital Markets Act (DMA), which outlines a list of dos and don’ts for major tech companies and threatens fines of up to 10% of a company’s global annual turnover, has faced legal challenges from Apple, Meta, and ByteDance since its implementation in May 2023.
The ruling by the General Court in Luxembourg will bolster the position of EU antitrust regulators in their efforts to create space for competitors and provide Europeans with more choices. “The General Court dismisses Apple’s actions regarding its designation as a ‘gatekeeper’ concerning the App Store and iOS,” the tribunal stated. It also noted that Apple’s actions regarding the iMessage service are inadmissible.
Apple’s position and the possibility of appeal
Apple once again criticized the DMA. “We firmly believe that the DMA’s mandate goes beyond what is lawful and proportionate, threatening to undermine decades of privacy and security protections we have built and leaving our users vulnerable to new risks,” an Apple representative said. “We will continue to advocate for the innovation and privacy our European customers deserve.”
Apple can appeal the decision on legal grounds to the Court of Justice of the European Union, which is Europe’s highest court.
Challenges to App Store, iOS and iMessage
Apple filed its complaints with the court in 2024 after the European Commission classified its five app stores on iPhone, iPad, Mac computers, Apple TV, and Apple Watch as a single core platform service under the Digital Markets Act. The judges sided with the EU’s antitrust body. “Regardless of the devices, these stores have the same purpose, namely to connect app developers with end users to facilitate the distribution of software,” they noted.
The iPhone maker also contested the classification of its iOS operating system as a crucial gateway for companies to reach users, which requires it to allow competitors to interact with the system.
Apple also challenged the designation of its iMessage messaging service as an interpersonal communications service independent of numbers, which could have subjected it to DMA rules. “This classification in itself does not create binding legal consequences that would alter Apple’s legal situation,” the Court stated. “In particular, none of the obligations provided for by the DMA apply to iMessage, since this service was not included in the decision on the designation as an important gateway.”
Source: South China Morning Post
