Apple Says EU’s Digital Markets Act Imposes ‘Onerous and Intrusive Burdens’

Apple lawyer Daniel Beard reportedly told the General Court in Luxembourg on Tuesday (Oct. 21) that the European Union’s Digital Markets Act “imposes hugely onerous and intrusive burdens” on the company.

Apple is challenging the DMA on multiple fronts, Bloomberg reported Tuesday.

The company says that the antitrust rule’s requirement that Apple make competitors’ hardware work with its iPhone could threaten users’ privacy and security, that the DMA should not apply to Apple’s App Store because it is not a “singular service” as defined by the law, and that the EU should not consider whether Apple’s iMessage should be investigated under the DMA because that service does not directly generate revenue for the company, according to the report.

EU commission lawyer Paul-John Loewenthal told the court Tuesday that Apple’s “absolute control” over the iPhone allows it to prevent competitors from offering products and services to users of the device and that the company has “locked in” those users.

In a separate action, Apple is contesting a fine of 500 million euros (about $581 million) imposed on the company under the DMA for its App Store’s alleged violations of the rules, according to the report.

Apple was also fined 1.8 billion euros under other EU antitrust laws for its App Store’s alleged violation of rules around music streaming apps, per the report.

When the European Commission imposed the 500-million-euro fine on Apple in April, it said the company breached the DMA’s anti-steering obligation by imposing restrictions that prevent app developers from informing consumers about offers that are available outside Apple’s App Store.

Apple told CNBC at the time that the Commission’s rulings “are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free.”

The company also faces a legal challenge in the United States, where the Justice Department brought a monopoly case in which Apple is accused of unlawfully dominating the smartphone market by using restrictions on the developers of apps and devices to keep users from switching to competitors.

It was reported Monday that Apple is facing an antitrust lawsuit in China that centers on the company’s policies around app distribution and payments. The complaint alleges that Apple abuses its dominant position in the market by requiring that iOS apps be distributed and payments be made on its platform and by charging high commissions of as much as 30%.