BY COMFORT OGBONNA
Apple has suffered a major legal setback after a European Union court dismissed its challenge against key provisions of the Digital Markets Act (DMA), leaving the technology giant subject to strict competition rules designed to curb the market power of the world’s largest digital platforms.
The ruling, delivered by the General Court in Luxembourg on Wednesday, upholds the European Commission’s decision to classify Apple’s App Store and iOS operating system as “gatekeeper” services under the Digital Markets Act. The decision reinforces the European Union’s efforts to increase competition in digital markets by requiring dominant technology companies to open their platforms to greater competition and provide consumers with more choices.
The Digital Markets Act, which came into force in 2023, is one of the European Union’s most ambitious attempts to regulate large technology companies. The law establishes a series of obligations for firms designated as gatekeepers, requiring them to avoid practices that could unfairly limit competition. Companies that fail to comply with the rules face penalties of up to 10% of their global annual revenue, with even steeper fines possible for repeated violations.
Apple is among several major technology companies that have challenged the legislation in court. Other firms, including Meta and ByteDance, have also filed legal actions disputing aspects of the new regulatory framework, arguing that the rules place excessive restrictions on their businesses.
In its judgment, the General Court rejected Apple’s arguments regarding its designation as a gatekeeper for both the App Store and the iOS operating system. The judges concluded that the European Commission acted within its authority when it classified Apple’s app distribution platforms as a single core platform service.
According to the court, Apple’s various App Stores across the iPhone, iPad, Mac, Apple TV, and Apple Watch all serve the same essential purpose by connecting software developers with consumers and facilitating the distribution of applications. Because they perform the same function, the court agreed that the platforms should be treated as one unified service under the Digital Markets Act.
The court also supported the European Commission’s decision to classify iOS as a crucial gateway through which businesses reach consumers. That designation requires Apple to make certain aspects of its operating system more interoperable with competing products and services, a move regulators believe will encourage innovation and reduce barriers to entry for smaller technology companies.
Apple had also sought to challenge the treatment of its iMessage service under the Digital Markets Act. However, the court ruled that this portion of the company’s case was inadmissible because the designation itself did not create immediate legal consequences for Apple.
The judges explained that none of the Digital Markets Act’s gatekeeper obligations currently apply to iMessage since the messaging platform has not been formally designated as an important gateway service. As a result, the court found that Apple could not challenge a classification that has not yet imposed any binding legal obligations.
Following the ruling, Apple reiterated its longstanding concerns about the Digital Markets Act, arguing that some of the law’s requirements could weaken the privacy and security protections the company has built into its products over many years.
An Apple spokesperson said the company believes the legislation goes beyond what is necessary and proportionate, warning that certain requirements could expose users to greater privacy and cybersecurity risks. Apple added that it will continue advocating for policies that protect innovation, user privacy, and the security of its customers across Europe.
Despite the setback, Apple still has legal options available. The company can appeal the ruling to the Court of Justice of the European Union, the bloc’s highest judicial authority, although any appeal would be limited to questions of law rather than a review of the factual findings.
The decision represents another important victory for European regulators as they continue implementing the Digital Markets Act, a law widely viewed as a landmark effort to reshape competition in the digital economy. Supporters argue the legislation will create a fairer marketplace by preventing dominant technology companies from using their control over digital ecosystems to disadvantage competitors.
The ruling is also expected to strengthen the European Commission’s position as it continues enforcing the Digital Markets Act against some of the world’s largest technology companies. With several investigations already underway, regulators are signaling that compliance with the new rules will remain a top priority as Europe seeks to foster greater innovation, competition, and consumer choice across the digital marketplace.
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