Apple Loses Antitrust Appeal In Germany, Could Get Stricter Rules

Apple is one of the most valuable and successful companies in the world. But what if that sustained growth was counterproductive in certain countries? That happened in Germany, where authorities gave Apple a “significant market power” classification in the apps segment. In a new development, Apple lost its appeal against this designation, leaving it subject to closer scrutiny from antitrust agencies and potentially stricter regulations.

A company receives the “significant market power” designation in the EU if it meets certain parameters. Regulators consider aspects such as the company’s market share, economic power, and influence over third parties, among others. Firms that receive this designation may receive stricter antitrust measures. This is to prevent abuse of a dominant position, according to authorities. In Germany, Alphabet—Google’s parent company—and Meta already have this designation. Now Apple joins the list.

Apple’s appeal against antitrust designation denied by federal judges in Germany

This designation came primarily from Apple’s handling of its App Store business. Now, the company could be subject to new rules for its app store.

Apple attempted to appeal the decision to avoid having to deal with further antitrust regulatory scrutiny. However, the Federal Court of Justice upheld the “significant market power” designation. This means that Apple’s business practices will now be closely monitored. The judges said Apple is a “company of paramount cross-market significance for competition.”

In recent years, authorities in Europe have been especially active against big tech companies. The arrival of the Digital Markets Act (DMA) has spurred these types of regulatory initiatives.

For its part, Apple considers the decision unfair as it faces stiff competition in Germany. “It neglects the value of a business model that places the privacy and security of users at its center,” added a spokesperson for the Cupertino giant. Apple had asked the Federal Court judges to consult with the European Court of Justice in Luxembourg on the case before making a decision. However, the judges refused to do so.

Europe continues its strict regulatory work, although with some dissenting voices

The EU’s antitrust initiatives have had their ups and downs. Thanks to the European Commission, the latest iPhone models have switched to the USB-C port globally. However, some argue that the European authorities are going too far in their regulatory efforts. The artificial intelligence segment has been one of the most affected. Some major AI-powered services are unavailable in the EU due to regulations. The list includes Apple’s AI-powered suite.

The United States has also spoken out against EU regulatory pressure on American companies. The latest ruling in Germany will surely not please Trump’s cabinet.