Apple must keep opening iPhone ecosystem to rivals after EU appeal defeat

Apple has lost its legal challenge against European Union competition rules after the bloc’s second-highest court upheld requirements forcing the company to open its App Store and iPhone operating system to greater competition.

The General Court of the European Union rejected Apple’s appeal against its designation as a “gatekeeper” under the Digital Markets Act (DMA), meaning the US technology giant must continue complying with rules aimed at giving rival developers and digital services greater access to iPhone users, as American media reported.

Apple had challenged the European Commission’s 2023 decision to classify its App Store and iOS operating system as core platform services subject to the DMA. The company argued that its ecosystem—including the iPhone, iPad, Mac, Apple Watch and Apple TV—should not be treated as a single platform because each device serves different purposes.

The court rejected that argument, ruling that Apple’s various app stores perform the same essential role by connecting software developers with users.

“Regardless of the devices in question, those stores have the same purpose, namely to connect app developers with end users in order to facilitate the distribution of software applications,” the court said in its decision.

The ruling means Apple must continue implementing major changes required under the DMA. These include allowing alternative app marketplaces on its devices, giving developers more flexibility over payment systems and improving interoperability between iOS and competing services.

The decision represents a setback for Apple’s efforts to limit the scope of EU regulation of its tightly controlled ecosystem. The company has argued that some of the requirements could weaken security and privacy protections for users.

However, the latest ruling does not resolve all disputes between Apple and Brussels. The company has separately appealed another EU decision concerning interoperability requirements, which require parts of iOS to work more seamlessly with rival applications, devices and services in a way similar to Apple’s own products.

The European Commission had initially introduced the Digital Markets Act to curb the influence of major technology platforms and create a more competitive digital market by preventing dominant companies from favouring their own services over rivals.

By Nazrin Sadigova