The European Union's General Court has dismissed Apple's (NASDAQ: AAPL) legal challenge against the application of the Digital Markets Act (DMA), compelling its App Store and iPhone operating system to fully adhere to the regulation's mandates.
The court upheld the EU regulator's designation of these services as "gatekeepers," finding Apple's arguments against the designation invalid.
In its ruling, the court confirmed Apple's gatekeeper status for the App Store and iOS, while also declaring inadmissible a related action concerning the iMessage service.
As one of the tech giants most resistant to EU regulation, Apple had contested obligations on three fronts: requirements to make its hardware interoperable with competitors' products, the decision to bring its highly profitable App Store under regulatory scope, and the procedural investigation that initially considered but later exempted iMessage.
The court's decision effectively rejects the first two of these arguments.
While the ruling can still be appealed to the EU's highest court, it is likely to embolden regulators in their efforts to use the DMA to constrain Silicon Valley firms.
The legislation has previously drawn criticism from both Apple and the Trump administration.
During last year's hearings, Apple argued the law imposed "extremely onerous and intrusive obligations" that conflicted with its rights in the EU market.
The European Commission countered, stating Apple's "absolute control" over the iPhone allowed it to "extract excessive profits in related markets where competitors are constrained and cannot compete fairly."
The DMA, which took effect in 2023, aims to regulate the market conduct of the world's largest tech platforms through a series of "do's and don'ts."
Since EU regulators began enforcement, the law has sparked disapproval from former U.S. President Trump and complicated transatlantic trade talks.
Separately, Apple's App Store was recently fined 5 billion euros (approximately $5.71 billion) for alleged violations, a penalty Apple is contesting in a distinct legal case.
Although Wednesday's court ruling is independent of that fine, it provides significant judicial backing for the EU's broader regulatory push against major technology companies.
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