Apple loses appeal against European Union law that limits the power of big techs

Apple
Sumudu Mohottige
Apple lost, this Wednesday (8), an appeal against European Union rules that classify its application store and the iOS operating system as gatekeepers.
➡ Gatekeeper is a company that occupies such a dominant position in the digital market that it can control which applications and services reach consumers. As millions of people depend on these platforms, legislation imposes rules to prevent them from favoring their own services or hindering the activities of competitors.
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The European Union's Digital Markets Law created a series of rules to limit the power of large technology companies and increase competition in the digital market. Among the requirements are measures to prevent these companies from favoring their own services to the detriment of competitors.
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Anyone who fails to comply with the rules can be fined up to 10% of global annual revenue. Since the law came into force in May 2023, Apple, Meta and ByteDance have gone to court to challenge some of the legislation's provisions.
The decision by the General Court of the European Union, based in Luxembourg, reinforces the bloc's strategy of imposing limits on the power of large technology companies to increase competition and expand the options available to consumers.
Apple says the law threatens privacy
Apple has once again criticized the Digital Markets Law.
"We firmly believe that The DMA's demands go beyond what is legal and proportionate, threatening to undermine decades of privacy and security protections we have built and leaving our users vulnerable to new risks," said a company spokesperson.
"We will continue to defend the innovation and privacy that our European customers deserve." Apple apps - available on iPhones, iPads, Mac computers, Apple TVs and Apple Watches - as a single essential platform service, subject to the rules of the Digital Markets Act.
The judges agreed with the European Commission's assessment.
"Regardless of the device, these stores have the same function: connecting app developers with users to facilitate the distribution of software," they said.
Apple also challenged the classification of iOS as an essential platform for companies to reach users. This framework obliges the company to allow competing products and services to work in an integrated manner with the operating system.
In addition, the company questioned the classification of iMessage as a communication service that works without depending on a telephone number, a category that, according to Apple, could subject it to the rules of the Digital Markets Law.
The court, however, stated that this classification, in itself, does not produce legal effects against the company.
"In particular, none of the obligations provided for in the DMA applies to iMessage, as the service was not included in the decision that defined which platforms are considered access controllers", said the Court.

Source: G1

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