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EU Court Dismisses Apple's Challenges to 'Gatekeeper' Status Under Digital Markets Act
Summary
The European Union's General Court has rejected Apple's legal challenges against the designation of its App Store and iOS operating system as "gatekeepers" under the landmark Digital Markets Act (DMA). The ruling strengthens the position of EU regulators aiming to increase competition in the tech sector.
Apple has lost its legal bid to overturn its designation as a "gatekeeper" under the European Union's Digital Markets Act (DMA), a court ruled on Wednesday. The Luxembourg-based General Court dismissed the company's challenges, upholding the European Commission's decision to subject Apple's App Store and iOS operating system to the new, stricter regulations aimed at curbing the power of major technology firms.
The Digital Markets Act, which came into effect in May 2023, imposes a list of obligations on designated gatekeeper companies to ensure a more competitive and fair digital market. These rules are designed to give smaller rivals more room to compete and provide consumers with more choices. Companies that fail to comply face significant penalties, including fines of up to 10% of their global annual turnover.
In its ruling, the court sided with the EU's competition authority, finding that Apple's various app stores across different devices—such as iPhones, iPads, and Mac computers—constitute a single core platform service. The judges also upheld the designation of the iOS operating system as an important gateway for businesses to reach end users, thereby subjecting it to DMA rules that require interoperability with rivals.
AdApple also contested the classification of its iMessage service. However, the court deemed this part of the challenge inadmissible, reasoning that since iMessage has not been officially listed in a designation decision as a gatekeeper service, the DMA's obligations do not currently apply to it. Therefore, its classification alone does not have a binding legal effect on the company.
In response to the verdict, an Apple spokesperson reiterated the company's concerns, stating that the DMA's mandate threatens to "erode decades of privacy and security protections" built for its users. The company maintains the option to appeal the decision on points of law to the Court of Justice of the European Union, the bloc's highest court.