The EU's General Court has upheld Apple's designation as a gatekeeper for its App Store and iOS operating system, reinforcing antitrust regulators' efforts to boost competition under the Digital Markets Act. According to reports from Bloomberg, judges at the EU's General Court in Luxembourg disagreed with Apple's challenge to the services being targeted under the EU's Digital Markets Act, stating that 'The General Court confirms the designation of Apple as a gatekeeper in relation to the App Store and iOS, and finds the actions concerning the iMessage service to be inadmissible.' The ruling strengthens the position of EU antitrust regulators as they attempt to make space for rivals and give Europeans more choice in digital markets.
The EU Digital Markets Act, which took effect in May 2023, sets out comprehensive rules for Big Tech companies with the threat of fines of as much as 10% of a company's global annual turnover. As reported by Bloomberg, the legislation has triggered legal challenges by major technology companies including Apple, Meta and ByteDance since its implementation. The ruling will provide regulatory clarity as EU antitrust enforcers continue to enforce the framework designed to promote competition in digital markets.
Apple took its grievances to the Court in 2024 after the European Commission designated its five App Stores on iPhones, iPads, Mac computers, Apple TVs and Apple Watches as a single core platform service under the Digital Markets Act. According to Bloomberg, Apple had contested the application of the law on three fronts: EU obligations to make rival hardware work with its iPhone, the regulator's decision to drag the hugely profitable App Store under the rules, and a decision to probe whether iMessage should have faced the rules, which it later escaped. The case stemmed from the Commission's September 5, 2023 decision under the DMA, which designated Apple as a gatekeeper in relation to the App Store, iOS and the Safari web browser.
The court addressed Apple's dispute over the classification of its messaging service iMessage as a number-independent interpersonal communications service (NIICS), which could subject it to DMA rules. As reported by Bloomberg, the court stated that 'That classification does not, by itself, produce binding legal effects that bring about a change in Apple's legal position.' The court emphasized that '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 also ruled that Apple's actions concerning its iMessage service were inadmissible.
Apple reiterated its criticism of the Digital Markets Act, with a company spokesperson stating that 'We firmly believe the DMA's mandate goes beyond what is lawful and proportionate, threatening to erode decades of privacy and security protections.' According to Bloomberg, Apple may appeal the ruling to the Court of Justice of the European Union within two months and ten days of notification, limited to points of law. The cases are identified as T-1079/23 Apple versus Commission, T-1080/23 Apple versus Commission and T-214/24 Apple and Apple Distribution International versus Commission. The ruling could meanwhile embolden regulators' appetite for reining in Silicon Valley firms using the DMA, which has drawn broad scorn both from Apple and Donald Trump's White House.
