Apple Inc. (NASDAQ:AAPL) on Wednesday lost its legal challenge against the EU’s landmark Digital Markets Act (DMA), which classifies its App Store and iOS operating system as “gatekeepers” subject to rules designed to boost competition.
The DMA, effective since May 2023, imposes obligations on major tech companies and allows fines of up to 10% of global annual revenue for violations. Meta Platforms Inc. (NASDAQ:META) and ByteDance have also challenged the law.
The General Court of the European Union dismissed Apple’s challenge to its designation as a “gatekeeper” for the App Store and iOS, reinforcing the EU’s antitrust efforts to boost competition and consumer choice.
The court also ruled that Apple’s challenge regarding iMessage was inadmissible.
Apple lost its challenge against the European Commission after an EU court upheld the decision to classify its five App Stores across iPhone, iPad, Mac, Apple TV, and Apple Watch as a single core platform service under the DMA.
The judges ruled that all five stores serve the same purpose of connecting app developers with users to distribute software. Apple can still appeal the legal ruling to the Court of Justice of the European Union.
In November, Apple informed the European Commission that Apple Ads and Apple Maps meet the thresholds under the DMA.
The iPhone maker reiterated its criticism of the DMA, and told Reuters that the law “goes beyond what is lawful and proportionate” and could undermine user privacy and security. The company said it would continue advocating for innovation and stronger privacy protections for its European customers.
Trump Slams EU Tech Crackdown
The EU decision came after the Court of Justice of the EU on Thursday upheld the €4.1 billion ($4.67 billion) antitrust fine against Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, rejecting the company’s appeal over alleged anti-competitive practices tied to the Android operating system.
The crackdown has strained U.S.-EU relations, with President Donald Trump accusing European Union regulators of unfairly targeting American companies.
In August, Trump warned he would impose steep tariffs on European exports unless the EU dropped what he called its “discriminatory” actions, adding that U.S. tech firms would no longer serve as the world’s “piggy bank” or “doormat.”
Last month, Trump had threatened to impose 100% tariffs on French wines and champagne unless France scraps its 3% digital tax on American technology companies. He added that Macron could avoid the tariffs by removing the tax.
The President also warned that any European country imposing a digital services tax on U.S. tech companies would face a 100% tariff on goods exported to the U.S. The threat comes days after the U.S.-EU trade deal left digital taxes unresolved.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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