Apple loses bid to overturn its designation as a gatekeeper under EU’s Digital Markets Act

Apple Faces Setback as EU Court Upholds ‘Gatekeeper’ Status

The tech landscape in Europe is shifting, and Apple is finding itself in the middle of a major regulatory tug-of-war. Back in 2023, the European Union officially labeled Apple—specifically iOS, the App Store, and Safari—as a “gatekeeper” under the Digital Markets Act (DMA). Apple hasn’t taken this lying down, and the resulting legal battle has been as complex as it has been heated.

At the heart of the dispute was Apple’s attempt to segment its ecosystem. The company argued that its various app stores (for iPhone, iPad, Apple Watch, Apple TV, and Mac) should be viewed as separate entities rather than a single “Core Platform Service” (CPS). Essentially, Apple contended that only the iOS App Store held enough weight to be classified as an essential intermediary, while its other stores didn’t meet the threshold for such strict regulation.

The EU General Court, however, wasn’t buying it. In a decisive ruling, the judges dismissed the argument, noting that no matter the device, the goal of these stores is identical: connecting app developers with users to distribute software. By lumping these services together, the court has effectively narrowed Apple’s room to maneuver.

While this is a significant loss, it’s likely not the end of the road. As the EU’s second-highest court, this ruling can still be appealed to the EU Court of Justice. Meanwhile, Apple is already fighting other battles, including an ongoing appeal against mandates that would force them to open up technical documentation and deeper iOS features to third-party developers.

What About iMessage?

Interestingly, iMessage currently sits in a bit of a grey area. While it hasn’t been officially designated as a gatekeeper under the DMA yet, the European Commission has been eyeing it as a “number-independent interpersonal communications service” (NIICS). Apple tried to challenge this label, but the court ruled that the classification doesn’t currently impose immediate, binding legal changes on the app. Even so, the failed challenge means iMessage remains squarely in the crosshairs for potential future investigations.

Between this latest court ruling and the pending appeal over a hefty €500 million fine related to anti-competitive steering policies, it’s clear that Apple’s current business model is under intense scrutiny. The path forward for Apple in the European market looks increasingly dictated by Brussels, as the DMA continues to reshape the rules of the road for big tech.