Antitrust pressure on Apple continues to mount. Germany’s Federal Court has rejected the company’s appeal, upholding the right of EU regulators to impose restrictions and set new rules for the App Store.
The lost appeal is the latest development in a long-standing battle between Apple and German regulators over control of the App Store and its effect on competition. Germany’s national competition authority, the Bundeskartellamt, insisted on its authority to demand that Apple make specific changes to the App Store. Now, as reported by 9to5Mac, the court has upheld that right, giving the agency the power to directly dictate Apple’s app store rules and policies.
Regulatory Differences Between the US and EU
The case began after new legislation came into force expanding the powers of Germany’s antitrust authorities. The regulator argued that Apple controls the iPhone app market, limiting competition, and demanded that the company be subject to new restrictions. Apple appealed, but the court sided with the regulator.
A key point of contention was the difference between antitrust laws in the United States and Europe. In the US, authorities must demonstrate not only a violation of competition but also actual harm to consumers, such as increased prices. In Europe, it is enough to identify the risk of harm and intervene early, before any harm materializes.
In this case, the German regulator concluded that Apple’s policies regarding the App Store create such risks. The court supported this position, noting that Apple plays a central role in the market and regulators have the right to intervene. “The court’s decision was almost inevitable,” notes 9to5Mac. Apple argued that it does not dominate the mobile app market overall, but European regulators emphasized that Apple’s monopoly on iPhone apps is the key factor.
Possible Future Restrictions
It is still unclear what specific rules might be introduced. Current EU legislation already requires Apple to allow third-party app stores, a requirement the company has started to comply with. However, the Bundeskartellamt now has the authority to impose further restrictions, potentially including limits on Apple’s commission fees.
Germany has become the first EU national regulator with the power to directly intervene in the App Store, setting a precedent for other countries. We’ll keep you updated as more developments and possible new rules emerge.