Apple loses EU court battle to evade landmark Digital Markets Act rules

BRUSSELS, July 8 — Apple lost its bid to escape digital competition rules after an EU court on Wednesday rejected the US giant’s challenge.

Apple appealed the European Union’s decision to apply stricter rules known as the Digital Markets Act (DMA) on its operating system iOS and App Store.

“The General Court dismisses all the actions brought by Apple,” the Luxembourg-based court said in a statement. “It confirms the designation of Apple as a gatekeeper in relation to the App Store and iOS.”

Companies like Apple are designated a so-called “gatekeeper” under the DMA, and their apps are subject to extra scrutiny as “core platform services”.

The DMA comes with a list of do’s and don’ts for the world’s biggest digital platforms in an attempt to keep them in check and create an open online space.

Apple has been one of the law’s fiercest critics, calling on the EU to repeal the DMA last year. The company defended its position after the ruling.

“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,” the company said.

“We will continue advocating for the innovation and privacy our European customers deserve,” Apple added in a statement.

Apple had also brought a challenge against the EU concerning iMessage but the court found the actions relating to iMessage “inadmissible”.

The EU had investigated whether iMessage should also comply with the DMA but ultimately Brussels decided against more rules on the messaging service.

“None of the obligations laid down by the DMA applies to iMessage since that service has not been listed in a designation decision as an important gateway,” the court said.

‘Good news’

A separate case brought by Apple relates to interoperability under the DMA, as it forces companies to make their products accessible to rivals.

The same EU court is still due to rule on interoperability.

The decision is another victory for the European Commission, the EU’s digital watchdog, after TikTok and Meta also lost challenges against the DMA.

Chinese-owned TikTok has, however, challenged the lower court’s 2024 ruling.

The European Consumer Organisation (BEUC) welcomed Wednesday’s decision.

“It is good news,” BEUC director general Agustin Reyna said, adding: “Anything less would have jeopardised the positive impact the Digital Markets Act is having in creating more choice for consumers online.”

He added Apple’s “resources would be better spent directed towards complying in full and without delay with the law”. — AFP