Apple Challenges EU’s Tech Rules on App Stores Classification
In a recent move, Apple has lodged a challenge against the European Union’s tech rules, particularly contesting the classification of its five App Stores as a single core platform service under the Digital Markets Act (DMA). According to a Reuters report, Apple argues that EU regulators have misunderstood and misapplied the legislation, which became effective in May 2022. The company claims that the European Commission made “material factual errors” by considering the five App Stores as a single core platform service.
Misunderstood and Misapplied: Apple Criticizes EU Regulators
Apple, in its plea to the General Court, has criticized the European Commission for its misunderstanding and misapplication of the Digital Markets Act (DMA). The tech giant argues that EU regulators have made “material factual errors” in their classification of the company’s five App Stores as a single core platform service. Apple believes that each App Store is designed for a specific operating system and Apple device, including iPhones, iPads, Mac computers, Apple TVs, and Apple Watches.
App Stores and iOS: Apple’s Plea to the General Court
Apple’s challenge against the European Union’s tech rules specifically targets the classification of its five App Stores and the designation of its operating system, iOS. The company argues that each App Store is designed for a specific operating system and device, and therefore should not be considered a single core platform service. Apple criticizes the European Commission for its “material factual errors” in categorizing the App Stores. The company has filed a lawsuit in November 2022, signaling potential legal battles between tech giants and EU regulators.
Apple’s Resistance to Compliance with DMA Requirements
The Digital Markets Act (DMA) imposes certain obligations on tech giants like Apple, including facilitating third-party interoperability with its services and allowing business users to promote offers and conclude contracts outside its platform. However, Apple is resisting compliance with the DMA’s requirements. The company questions the characterization of its operating system, iOS, as a significant gateway for business users to reach end users. Apple challenges the associated interoperability obligations and raises concerns about potential conflicts with its business model.
iMessage and NIICS: Apple’s Dispute with the European Commission
Apple’s legal action extends beyond the App Stores and iOS. It also addresses the European Commission’s designation of its messaging service, iMessage, as a number-independent interpersonal communications service (NIICS). This designation has prompted an EU investigation into whether iMessage should comply with DMA rules. However, Apple contests this characterization, arguing that iMessage is not a fee-based service and does not monetize it through the sale of hardware devices or the processing of personal data. The dispute between Apple and the European Commission raises questions about the application of DMA rules to messaging services and the broader implications for tech companies.
Analyst comment
Neutral news: Apple Challenges EU’s Tech Rules on App Stores Classification.
As an analyst, it is expected that the market will closely monitor the outcome of Apple’s challenge against the EU’s tech rules. If Apple is successful in proving its case, it could result in a reclassification of its App Stores and a potential change in how other tech companies are regulated. This could have ramifications for the broader tech industry and may lead to further legal battles between tech giants and EU regulators.
