Apple’s Antitrust Appeal Meets Resistance in German Court

Apple is confronting a significant challenge in its bid to overturn a decision by Germany’s Federal Cartel Office, the country’s antitrust regulator, which subjects the tech giant to heightened scrutiny under strict competition rules. According to Bloomberg, the five judges of Germany’s Federal Court of Justice indicated during a hearing on Tuesday that they are likely to reject Apple’s appeal against the regulator’s ruling.

The case revolves around the application of Germany’s “19a rules,” a legal framework introduced in 2021 to address the dominance of key players in the digital economy. The Federal Cartel Office determined in May 2023 that Apple’s powerful market position, combined with its strategy of bundling hardware and software, warranted stricter regulatory oversight.

During the hearing, Presiding Judge Wolfgang Kirchhoff outlined several factors supporting the regulator’s decision, including Apple’s substantial financial influence and its significant market share.

Read more: Apple’s New Developer Fees Face Renewed Scrutiny from EU Antitrust Regulators

As the court continues to deliberate, both Apple and the Federal Cartel Office are submitting additional arguments. However, Bloomberg notes that the judges’ preliminary assessment suggests Apple faces an uphill battle to reverse the ruling.

This case marks the second high-profile attempt by a Silicon Valley tech giant to challenge Germany’s 19a rules. Last year, Amazon similarly failed to persuade the court to exempt it from the stricter regulations. In recent years, Germany’s Federal Cartel Office has expanded its oversight to include other major companies such as Meta Platforms Inc.’s Facebook, Alphabet Inc.’s Google, and Microsoft Corp.

Source: Bloomberg