Apple has recently faced a significant defeat in its legal battle with the European Commission regarding its designation as a gatekeeper. The European Court of Justice rejected the company’s appeals against the classification of iOS and the App Store.
Apple’s Attempt to Overturn the Gatekeeper Status
In September 2023, the European Commission classified Apple as a gatekeeper concerning iOS and the App Store under the Digital Markets Act (DMA). This designation imposes specific obligations on major platform operators that serve as key intermediaries between businesses and end-users.
This classification has immediate implications for Apple. For instance, it must allow the distribution of apps through alternative app marketplaces or directly via the web. Additionally, developers are permitted to guide users to alternative methods of purchasing digital content.
Apple challenged this decision in court, disputing the classification of the App Store as a single central platform service and opposing provisions within the DMA regarding interoperability.
Multiple App Stores Considered as One Service
The court did not accept Apple’s arguments. According to the judges, the various versions of the App Store constitute a single central platform service, regardless of whether the store is accessed on an iPhone, iPad, Mac, Apple Watch, or Apple TV.
The ruling emphasized that all App Stores serve the same fundamental purpose: they connect software developers with end-users and facilitate the distribution of applications. Any differences between devices do not justify splitting them into various separate platform services.
Apple sought exactly this separation. The company’s argument suggested that only the iOS App Store met the necessary user threshold for gatekeeper classification, which is set at 45 million monthly active users.
Additionally, Apple’s objections to the interoperability obligations outlined in the DMA did not help its case. The court deemed this part of the appeal inadmissible, stating that the contested DMA rule was neither the basis for the gatekeeper classification nor directly related to the decision.
iMessage Remains an Exception
The court also addressed the situation regarding iMessage. Although the Commission classified the messaging service as a central platform service, it did not designate Apple as a gatekeeper for iMessage following a market investigation. Consequently, there are no DMA obligations for the messaging service under gatekeeper classification.
The court ruled the appeals from Apple concerning these findings and the market investigation as inadmissible. Simply classifying iMessage as a central platform service does not alter Apple’s legal standing bindingly.
However, the ruling does not necessarily mark the end of the matter. Apple has the option to file an appeal limited to questions of law at the Court of Justice of the European Union within two months and ten days following the notification.
