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Apple lost its legal challenge against European Union competition rules on Wednesday after the bloc’s second-highest court upheld requirements forcing the company to open its App Store and iPhone operating system to its rivals.
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The General Court of the European Union dismissed Apple’s challenge to its designation as a “gatekeeper” under the Digital Markets Act (DMA), meaning the US company must continue to comply with legislation designed to give other app developers and digital services greater access to iPhone users.
Apple challenged the European Commission’s 2023 decision to designate its App Store and iOS operating system as gatekeeper services, arguing that iPhone, iPad, Mac, Apple Watch and Apple TV should be treated separately rather than as a single platform.
The court rejected that argument, finding the app stores all perform the same function of connecting developers with 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 ruling statedOpen.
In a statement, an Apple spokesperson said, “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’s legal challenge on ‘interoperability’ still ongoing
The ruling means Apple must continue to comply with the Act, which requires the company to allow its products to host alternative marketplaces to purchase apps, give developers more freedom over how to receive payments, and improve the software operations between iOS and other providers.
However, Apple has a separate appeal lodged with the same court on the issue of interoperability.
The Digital Markets Act requires Apple to make parts of iOS able to integrate with rival apps, devices and services so they can work more seamlessly with the iPhone in the way Apple’s own devices do.
That includes giving third-party developers greater access to features such as notifications, device pairing, file transfers and other system functions that have traditionally worked best with Apple’s own products.
Apple argues the requirements could weaken the privacy and security protections built into iOS by forcing it to expose sensitive technology to competitors. The European Commission says the measures are needed to prevent Apple from unfairly favouring its own products, which prevents consumer choice.
The latest judgment marks another setback for Big Tech companies challenging the European Union’s efforts to regulate digital platforms and services.
Last week, the Court of Justice of the European Union rejected Google’s appeal against a record €4.1 billion ($4.8 billion) antitrust fine over its Android mobile operating system, upholding the European Commission’s finding that the company had abused its dominant market position by imposing unlawful restrictions on smartphone manufacturers and mobile network operators.
Apple can appeal Wednesday’s ruling to the Court of Justice of the European Union, but only on points of law the General Court stated.
Additional sources • AFP
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