Apple has taken legal action against the European Commission (EC), contesting the application of the Digital Markets Act (DMA) to its App Stores and messaging service iMessage according to a new report by Reuters.
The heart of Apple’s argument lies in its opposition to the EC’s designation of its five App Stores (one for each device type) as a single core platform service. This categorization subjects Apple to a range of onerous obligations under the DMA, including allowing third-party app stores and facilitating interoperability with external services. Apple contends that the Commission misinterpreted the legislation by lumping together distinct app stores, arguing that each caters to a specific device with its own ecosystem.
Furthermore, Apple disputes the characterization of iOS as an important gateway for business users and the associated interoperability requirements. In response, the company highlights that iOS offers various marketing opportunities for businesses within its app ecosystem, while maintaining control over the user experience for security and privacy reasons.
Beyond the App Stores, Apple also challenges the classification of iMessage as a number-independent interpersonal communications service (NIICS). This designation under the DMA could potentially force Apple to open up iMessage to other messaging platforms, altering its current closed-loop system. However, Apple argues that iMessage falls outside the NIICS definition because it’s not fee-based or monetized through hardware sales or data processing.
Apple’s legal challenge against the DMA also comes amidst heightened scrutiny from the EU. This week, Margrethe Vestager, the bloc’s antitrust chief, is set to meet with Apple CEO Tim Cook in the United States. This meeting is likely to delve into concerns about anticompetitive practices and the DMA’s application. Furthermore, speculation suggests that the discussion might even touch upon Apple’s potential decision to open up its NFC platform, a move with ramifications for contactless payments and beyond. While the official agenda remains under wraps, the timing and potential topics of this meeting underscore the escalating tensions between Apple and the EU Commission, with the future of the digital market hanging in the balance.
While this legal challenge represents a pushback against the DMA’s regulatory reach, it’s essential to consider the wider context. The EU aims to establish a level playing field in the digital market, addressing concerns about dominant platforms like Apple potentially stifling competition and innovation. Ultimately, the General Court’s decision will hold significant weight in determining the extent of the DMA’s application to Apple and shaping the future of the digital landscape in the EU.
While Apple emphasizes maintaining control over its platforms for user safety and experience, the EU seeks to foster an open and competitive ecosystem. The legal battle ahead will likely center on interpreting the DMA’s provisions and their applicability to Apple’s specific case. This ongoing dialogue between regulators and tech giants has the potential to reshape the digital landscape not only in Europe but potentially across the globe.
