Armand Valendez
Apple’s appeal at Germany’s highest civil court regarding its designation as a significant market power was unsuccessful on Tuesday. This classification allows antitrust regulators greater authority and flexibility to examine the company’s business practices.
The judges at the Federal Court of Justice upheld the German cartel office’s 2023 classification of Apple as a “company of paramount cross-market significance for competition.”
As a result, Apple joins other major technology firms, such as Alphabet, the parent company of Google, and Meta, the owner of Facebook, on Germany’s expanding list of tech giants that may face measures to limit their market dominance.
In recent years, regulators around the globe have intensified their scrutiny of Big Tech to foster competition and enhance consumer choice. The European Commission’s Digital Markets Act (DMA), enacted in 2023, is regarded as a key regulatory framework in this effort.
Apple contended that it encounters significant competition in Germany and expressed disagreement with the court’s ruling. A company spokesperson stated in an email to Reuters, “It overlooks the importance of a business model that prioritizes user privacy and security.”
While the court’s decision represents a victory for the German antitrust authority, Assimakis Komninos, a partner at White & Case, noted that the broader regulatory actions by influential EU regulators pose a greater challenge to Big Tech.
“The Court affirms that German legislation is valid. However, the scope of the Digital Markets Act remains unchanged and continues to serve as the primary standard for regulating Big Tech,” he remarked.
A judge had suggested in January that the German court would support the regulator’s position.
Additionally, the court chose not to seek guidance from the European Court of Justice in Luxembourg regarding the case, despite a request from Apple’s legal representatives. Apple’s App Store has come under significant scrutiny in Europe, where regulators have raised concerns about the extensive data it collects on user behavior.
Andreas Mundt, president of the cartel office, expressed his approval of the court’s decision in a statement. “This indicates that the highest court has affirmed that Apple is subject to more stringent abuse oversight,” Mundt stated. “Our ongoing examination of Apple’s tracking regulations for third-party applications is therefore well-founded, and we are diligently pursuing this case as well as other actions against major internet companies,” he added.
