Apple Loses Major EU Court Case Over App Store Gatekeeper Designation
In Focus
- The court confirmed decision by EU regulators to designate App Store and iOS as gatekeepers
- Apple had argued that its products should be treated separately, not as a single platform
- The ruling could embolden EU regulators as they seek to expand product options for users
Apple has lost an EU court case in which it challenged a decision to designate it as a gatekeeper under the Digital Markets Act (DMA). The designation required Apple to open the App Store and iOS to rival apps to boost competition.
“The General Court dismisses all the actions brought by Apple. It confirms the designation of Apple as a gatekeeper in relation to the App Store and iOS, and finds the actions concerning the iMessage service to be inadmissible,” the ruling by the General Court of the European Union read in part.
Why has the EU Court Dismissed Apple’s Case?
While challenging the EU’s gatekeeper designation decision, Apple had argued that its products should be treated separately, not as a single platform. However, the court dismissed this argument and determined that app stores serve as a link between developers and end users.
“Irrespective of the devices in question, those stores have the same purpose, namely to connect app developers with end users in order to facilitate the distribution of software applications,” the Court ruling added.
The ruling on Apple’s iOS gatekeeper designation will likely embolden EU regulators as they seek to offer European users more options and boost competition in the region. The DMA outlines competition rules in the EU. Violation of this law could attract fines of up to 10% of a company’s annual global turnover.
Apple’s Reaction to the App Store DMA Ruling
Following the court ruling, Apple must comply with DMA and host alternative marketplaces on its products and support other payment methods. The tech giant is also expected to improve interoperability between iOS and other providers.
Apple, which made App store changes in the U.K. earlier this year, has argued that exposing its technology to rivals could weaken the privacy and security guardrails built into iOS.
“We firmly believe the DMA’s mandate goes beyond what is lawful and proportionate, threatening to erode decades of privacy and security protections we’ve built and leaving our users vulnerable to new risks. We will continue advocating for the innovation and privacy our European customers deserve,” Apple Spokesperson noted as cited by Euronews.
Already, Apple has filed a separate appeal on the interoperability issue in the same court. EU regulators argue Apple’s adherence with the DMA rule is critical in ensuring that the tech giant does not favor its products and deny consumers access to other options.
What Does Apple’s DMA Ruling Mean for U.S. Big Techs?
The latest DMA ruling is a major setback for American big techs that have been pushing back on EU’s efforts to regulate digital services. News about Apple’s EU ruling came soon after, Google lost an appeal against a €4.1 billion antitrust fine over the Android mobile operating system.
Google suffered a setback after the EU’s top court upheld the decision of the European Commission. EU antitrust regulators have fined Google nearly €11 billion for violating EU competition laws over the last decade.
