Apple (AAPL.O), opens new tab lost its challenge on Wednesday against landmark EU rules that designate its app stores and operating system iOS as gatekeepers subject to obligations aimed at giving rivals more room to compete. The EU Digital Markets Act, which sets out a list of dos and don'ts for Big Tech with the threat of fines of as much as 10% of a company's global annual turnover, has triggered legal challenges by Apple, Meta (META.O), opens new tab and ByteDance since it took effect in May 2023.
The ruling by the Luxembourg-based General Court will strengthen the position of EU antitrust regulators as they attempt to make space for rivals and give Europeans more choice. "The General Court dismisses Apple's actions regarding its designation as a gatekeeper in relation to the App Store and iOS," the tribunal said. It also said that Apple's actions regarding the iMessage service are inadmissible. Apple reiterated its criticism of the DMA.
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."
"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," they said. The iPhone maker also contested the labelling of its operating system iOS as an important gateway for businesses to reach users requiring it to allow rivals to inter-operate with the system.
