Apple Inc (AAPL:US) is gearing up to challenge the European Union's latest initiative to rein in Big Tech dominance through the Digital Markets Act (DMA). The tech giant will dispute the EU regulator's decision to include the entire App Store in the new digital antitrust list. Additionally, Apple contends that its iMessage service should not face heightened scrutiny from regulators, insiders revealed.
As of now, Apple's appeal is in draft form and subject to potential changes before the November 16 deadline for challenges at the EU's General Court. The European Commission has refrained from commenting, and Apple has not responded to requests for statements.
This potential legal standoff marks another chapter in Apple's ongoing legal tussle with the EU. The company is already embroiled in a dispute over alleged unpaid taxes in Ireland and faces separate antitrust probes into its tap-and-pay technology and its treatment of music streaming rivals, including Spotify Technology SA (SPOT:US).
The Digital Markets Act establishes stringent regulations for major digital firms, enhancing the EU Commission's antitrust enforcement powers. The rules prohibit platforms from favoring their own services over rivals, prevent the amalgamation of personal data across services, and forbid the use of data collected from third-party merchants to compete against them. Furthermore, these companies must enable users to download apps from competing platforms.
Despite Apple's appeal, it must comply with the rules slated to take effect on March 6. The company anticipates making changes to the App Store in response to these regulations.
In the realm of Big Tech, Alphabet’s (GOOGL:US) Google Search, Apple's Safari, Amazon's (AMZN:US) marketplace, Bytedance’s TikTok, and Meta’s (META:US) Facebook are among the 22 services falling under the purview of the EU's Digital Markets Act.
Apple’s stock has seen a remarkable YTD rise of more than 49%, highlighting the ongoing strength and appeal of Apple in the market.