In a bold move, Apple Inc. is gearing up to challenge the European Union's recent crackdown on the domination of Big Tech companies. The tech giant is expected to file an appeal against the Digital Markets Act, starting with its objection to including the entire App Store in the EU's new digital antitrust list. Additionally, Apple will argue that its popular iMessage service should not be subject to closer scrutiny from regulators, according to insiders familiar with the matter.
Although the appeal is still in draft form and could potentially change before the November 16 deadline, the move signals Apple's intent to contest the EU regulator's decisions. It is worth noting that the European Commission has declined to comment, while Apple has refrained from responding to email inquiries seeking comment.
This development sets the stage for another potential legal standoff between the tech giant and the European Union. Apple is already embroiled in a dispute with the EU over allegations of unpaid taxes in Ireland. Moreover, the company faces separate antitrust investigations by the EU, including one concerning its tap-and-pay technology and another examining its treatment of music streaming rivals like Spotify Technology SA.
The newly implemented Digital Markets Act aims to establish strict regulations for the largest digital companies and empower the EU Commission in its role as the antitrust enforcer. Under the new rules, platforms will be prohibited from favoring their own services over those of competitors. They will also be barred from leveraging data collected from third-party merchants to compete against them and must allow users to download apps from rival platforms. Combining personal data across different services will also be prohibited.
While Apple's appeal remains pending, it is important to note that the company will still be required to adhere to the rules outlined in the Digital Markets Act when they come into effect on March 6. Apple has already indicated that it expects to make changes to the App Store in response to the new regulations.
The Digital Markets Act encompasses a list of 22 major tech services, including Google Search by Alphabet Inc., Safari by Apple, Amazon.com Inc.'s marketplace, TikTok by Bytedance Ltd., and Facebook by Meta Platforms Inc. These companies will need to comply with the regulations set forth by the EU to avoid penalties and legal repercussions.