Apple has today lost a major antitrust appeal in Europe, with all three of its claims being rejected. The company has long been fighting its requirement to comply with the EU’s Digital Markets Act (DMA), but a court has dismissed all of its claims regarding its designation as a gatekeeper for iOS, the App Store, and iMessage.
Background on the Digital Markets Act
The Digital Markets Act is a landmark antitrust law that designates certain tech giants as so-called “gatekeepers.” Essentially, it identifies companies that are so powerful they can abuse their dominant market position to block smaller players from competing with their own products, and impose unfair terms on businesses forced to partner with them. Companies designated as gatekeepers must take steps to make it easier for other companies to compete — for example, by allowing alternative app stores, enabling interoperability, or refraining from self-preferencing their own services.
Apple was designated a gatekeeper in respect of both the iOS platform as a whole and the App Store specifically. The reasoning is that developers cannot freely access the app market without creating iOS apps, and Apple has full control over that marketplace. Apple had not permitted competing app stores, so it could dictate its own terms. Additionally, the EU investigated whether Apple’s iMessage should also be categorized as a gatekeeper service, ultimately deciding against it because WhatsApp dominates the European messaging landscape even among iPhone users.
Apple’s Appeal and the Court’s Rejection
Apple appealed its designation for all three elements: iOS, the App Store, and iMessage. Although iMessage was not included in the final gatekeeper designation, the company likely wanted to preempt any future action. In a ruling today, the Luxembourg-based General Court dismissed all arguments. The court said: “The General Court dismisses Apple’s actions regarding its designation as a gatekeeper in relation to the App Store and iOS.” It also ruled that Apple’s actions regarding the iMessage service are inadmissible, meaning the company cannot even challenge the non-designation in that manner.
This ruling is a significant victory for EU antitrust regulators, who are attempting to create more space for rivals and give Europeans more choice. The court’s decision reinforces the DMA’s legal standing and sends a clear message to other gatekeeper companies like Google, Meta, and Amazon.
Apple’s Response and Likely Next Steps
Apple is expected to appeal the matter to the EU’s equivalent of the Supreme Court, the Court of Justice of the European Union. The company has not yet announced its intention, but has repeated its criticism of the DMA. 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.”
This ongoing legal battle is part of a wider tension between Big Tech and European regulators. The DMA imposes strict obligations, including allowing users to uninstall pre-installed apps, enabling third-party app stores, and prohibiting self-preferencing in search results and ranking. For Apple, the most contentious requirement is the sideloading of apps, which the company argues would compromise iOS security.
Historical Context: Apple’s Antitrust Battles
Apple has faced antitrust scrutiny worldwide. In the United States, the Department of Justice and the Federal Trade Commission have investigated various practices, including the App Store’s 30% commission and restrictions on payment systems. The Epic Games lawsuit, while not fully successful, revealed internal documents that fueled antitrust debates. In Europe, Apple has already made concessions, such as allowing third-party payment providers for dating apps in the Netherlands and paying a €1.8 billion fine for abusing its dominant position in music streaming (a case brought by Spotify).
The DMA represents the most comprehensive regulatory framework yet. Unlike traditional antitrust enforcement, which takes years, the DMA is proactive and imposes obligations ex ante. Non-compliance can result in fines up to 10% of global annual turnover, or up to 20% for repeat offenses.
Implications for iOS Users and Developers
For European iPhone users, the ruling means Apple must continue to comply with the DMA. This includes allowing alternative app marketplaces, letting users change default apps (like browsers, mail, and payment apps), and ensuring that communication services are interoperable where appropriate. Developers will benefit from more favorable terms, such as reduced commission rates and the ability to offer alternative payment systems without Apple’s involvement.
However, the full timeline remains uncertain. Apple may request interim measures from the Court of Justice to suspend compliance while the final appeal is pending. If such a request is granted, the implementation of some DMA rules could be delayed for months or years.
The European Commission has already begun enforcing the DMA against other gatekeepers. Google has been fined for preventing rival search engines from appearing on Android phones, and Meta has been ordered to stop using personal data from across its platforms to target ads without consent. Apple’s loss today reinforces the Commission’s authority and could lead to more aggressive enforcement.
Beyond the legal aspects, the ruling has political and economic consequences. The EU aims to create a level playing field for European tech companies and reduce dependency on US giants. This case also sets a precedent for other jurisdictions, such as the UK’s Digital Markets, Competition and Consumers Act and Japan’s proposed smartphone software competition law. Apple’s fight in Europe is being watched closely by regulators worldwide who are crafting similar legislation.
As the appeals process unfolds, Apple will likely focus on highlighting the potential harms to privacy and security. The company has long marketed itself as a champion of user privacy, and it argues that sideloading and third-party payment systems could expose users to malware, fraud, and data breaches. However, critics note that Apple’s security argument often overlaps with its business interests, as the App Store and its payment system generate substantial revenue.
Meanwhile, the EU maintains that its rules are designed to protect consumer choice without sacrificing safety. The Digital Services Act (DSA) also imposes obligations on platforms to address illegal content and disinformation, complementing the DMA. Together, these laws represent Europe’s most ambitious attempt to regulate the digital economy.
Source:9to5Mac News