In Germany's top civil court on Tuesday, Apple's challenge against being classified as a significant market power was rejected. This classification allows antitrust regulators more authority to scrutinize Apple's business practices. The Federal Court of Justice upheld the German cartel office's 2023 designation of Apple as a "company of paramount cross-market significance for competition."
Apple now joins Google's parent company Alphabet and Meta, Facebook's owner, on Germany's list of tech giants subject to potential measures to curb their dominance. Global regulators have increasingly targeted Big Tech to foster competition and provide consumers with more alternatives. The European Commission's Digital Markets Act (DMA), enacted in 2023, is considered a pivotal development in this regard.
Apple expressed discontent with the ruling, citing the significance of its privacy-focused business model. A spokesperson for the company noted that the decision undervalued their model's emphasis on privacy and security.
This legal victory for the German antitrust authority is seen as a blow to Big Tech by Assimakis Komninos, a partner at White & Case, who emphasized that the Digital Markets Act remains the primary standard for regulating tech giants. The court's decision underscored the strength of German legislation, without impacting the reach of the Digital Markets Act.
The European Court of Justice in Luxembourg was not consulted, as requested by Apple, and a judge had foreseen the German court ruling in favor of the regulator back in January.
Apple's App Store has been under scrutiny in Europe due to concerns about the amount of user data it collects. Andreas Mundt, the president of the cartel office, welcomed the court's decision, affirming that Apple will now face stricter abuse controls. He highlighted ongoing investigations into Apple's practices, along with other major internet companies, to ensure fair competition.