Apple’s App Store Appeal Hits a Brick Wall in Luxembourg
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Apple took a big legal hit today, losing an antitrust appeal in Europe connected to its ongoing struggle against the EU’s Digital Markets Act (DMA). The Luxembourg-based General Court rejected all three of Apple’s claims.
Why Was Apple in Court?
Apple is fighting against the requirements of the European Union’s set of antitrust laws enshrined in the DMA, which designate massive tech companies like Apple and Google as “gatekeepers.”
According to the EU, these companies are so huge and dominant that they can use their position to block smaller players from competing against them, while also being in a position to impose unfair terms on the companies that must partner with them.
Any company that is designated as a gatekeeper is required to make it easier for other companies to compete in the marketplace.
Unfortunately for Apple, it has been designated a gatekeeper both for the App Store and the entire iOS platform. The EU claims that developers cannot get access to the iOS app market without becoming an official Apple developer and distributing their apps on the App Store, which gives Apple full control of the platform. Apple’s blocking of third-party app stores also allows it to dictate the terms of its relationships with developers.
The DMA already forced Apple to make big App Store changes in Europe two years ago, and has since been pushing it to open hardware compatibility to allow third-party accessories like smartwatches and Bluetooth earbuds to enjoy the same privileges as the Apple Watch and AirPods.
In addition to naming Apple as a gatekeeper in reference to the iOS platform and its related App Store, the EU had been considering whether to apply gatekeeper status to Apple’s iMessage platform. However, it eventually did not do so, as WhatsApp is actually the dominant European messaging platform — even on the iPhone.
Why Apple’s Appeal Was Rejected
Apple’s appeal covered its gatekeeper designation for iOS, the App Store, and iMessage, despite iMessage not actually being included in the Cupertino firm’s gatekeeper status, presumably to lay the foundation for a legal battle that could ensue if the messaging app is included at a later date.
Reuters reports that the court rejected all three of Apple’s arguments.
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.
It’s a sure bet that Apple will appeal the matter to the Court of Justice of the European Union, the EU’s equivalent of the Supreme Court. The company has a history of taking its legal battles to the highest court possible, so this battle should be no exception.
Apple appealed to the Court in 2024 following the European Commission (EC) designating its five App Stores that serve the iPhone, iPad, Mac, Apple TV, and Apple Watch platforms as a single core platform service under the Digital Markets Act. Unfortunately for Apple, the judges sided with the EC.
While the company has not announced its intention to appeal the rulings, it did repeat its previous 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.”
