Apple has lost its legal challenge against European Union rules that classify its App Store and iOS operating system as key platforms subject to stricter obligations aimed at increasing competition in the digital market.
The Luxembourg-based General Court on Wednesday dismissed Apple’s challenge against its designation as a “gatekeeper” under the EU’s Digital Markets Act (DMA), strengthening regulators’ efforts to open up competition and provide consumers with more choices.
“The General Court dismisses Apple’s actions regarding its designation as a gatekeeper in relation to the App Store and iOS,” the tribunal said.
The DMA, which came into force in May 2023, sets out a list of obligations for major technology companies, including restrictions on practices that could limit competition. Companies found breaching the rules face potential fines of up to 10% of their global annual turnover.
Apple had challenged the European Commission’s decision to designate its App Store services across devices including iPhones, iPads, Mac computers, Apple TVs and Apple Watches as a single core platform service under the legislation.
The company also contested the classification of iOS as an important gateway for businesses seeking to reach users, which requires Apple to allow greater interoperability with competing services.
Apple maintained its opposition to the DMA, arguing that the rules could weaken privacy and security protections for users.
“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,” an Apple spokesperson said.
“We will continue advocating for the innovation and privacy our European customers deserve.”
The company has the option to appeal the ruling on matters of law to the Court of Justice of the European Union, the bloc’s highest court.
The court also rejected Apple’s challenge related to iMessage, ruling that the action was inadmissible as the classification itself did not create binding legal effects. iMessage has not been listed under the DMA as a service subject to specific obligations.
Reuters
