Apple Takes on EU in Landmark Challenge to Digital Markets Act

During a hearing before the General Court in Luxembourg, Apple’s lawyer Daniel Beard argued that the DMA “imposes hugely onerous and intrusive burdens” that conflict with the company’s rights within the European marketplace. The law, introduced in 2023, aims to rein in the dominance of major tech platforms through a range of strict interoperability and competition requirements. However, per Bloomberg, Apple has emerged as the most prominent challenger among U.S. firms pushing back against the sweeping legislation.

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Apple’s lawsuit targets three specific aspects of the DMA. The first concerns requirements that force its devices, such as iPhones, to work seamlessly with competing hardware. Apple contends that such mandates could jeopardize user privacy, security, and intellectual property protections. The second challenge focuses on the European Commission’s decision to include the App Store under the DMA’s scope — a move that subsequently led to a €500 million ($581 million) fine for alleged noncompliance, which Apple is separately contesting. Finally, the company disputes an EU inquiry into whether its iMessage service should fall under the same rules, noting that iMessage does not directly generate revenue.

Read more: Chinese Consumers File Antitrust Complaint Against Apple Over App Store Practices

EU lawyers have defended the regulation as a necessary measure to curb monopolistic control in the digital marketplace. Paul-John Loewenthal, representing the European Commission, told the court that Apple’s “absolute control” over its ecosystem enables it to reap “supernormal profits in complimentary markets where its competitors are handicapped.” He added, “Only Apple has the keys to that walled garden. It decides who gets in and who can offer their products and services to iPhone users.” Loewenthal further emphasized that such control has effectively locked in more than a third of European smartphone users.

According to Bloomberg, the case highlights growing transatlantic tensions over digital regulation. U.S. officials, including former President Donald Trump, have criticized the DMA as disproportionately targeting American tech firms, complicating ongoing trade discussions between Washington and Brussels. Apple’s challenge follows an earlier defeat for ByteDance, the parent company of TikTok, which failed to overturn its inclusion under the same law.

Apple’s dispute comes amid a broader crackdown by the EU on major technology firms. The bloc has levied over €9.5 billion in fines against Alphabet Inc.’s Google in past years and ordered Apple to repay €13 billion in back taxes to Ireland. Earlier this year, the iPhone maker faced another penalty of €1.8 billion for allegedly stifling competition in the music streaming market — a case rooted in traditional antitrust laws but sharing many of the same concerns addressed by the DMA.

Source: Bloomberg