Apple’s Legal Setback: German Court Upholds Special Abuse Regulations for Big Tech
In a significant legal setback for Apple, the tech giant has lost an appeal against a special abuse control regime enforced by Germany’s competition watchdog. This ruling will keep Apple under stringent competition regulations in one of Europe’s largest markets, alongside similar laws such as the EU’s Digital Markets Act (DMA).
Germany’s Federal Court Upholds Regulations on Apple
On Tuesday, Reuters reported that Germany’s Federal Court of Justice reaffirmed a five-year regulatory designation imposed on Apple by the Federal Cartel Office (FCO) in April 2023. This special abuse control regime aims to create a more even competitive landscape for digital companies operating in the country.
Concerns Over App Tracking Transparency
Recently, the FCO expressed concerns that Apple’s App Tracking Transparency framework may constitute self-preferencing, a practice that is prohibited under the current regulations. As a result, Apple may be compelled to treat its own data collection for advertising on its platform equally to that of third-party apps.
Apple’s Response to the Court Ruling
In response to the unfavorable court decision, Apple issued a statement expressing its disagreement. The company maintains that it faces “fierce competition in Germany,” emphasizing its role as a catalyst for innovation and job creation:
“Apple is proud to be an engine for innovation, job creation, and competition in every market where we operate. We disagree with the FCJ’s decision today to uphold the FCO’s designation, which discounts the value of a business model that puts user privacy and security at its core.”
Other Tech Giants Under Scrutiny
Apple is not alone in facing these stringent regulations. Other notable tech companies, including Google, Meta, and Microsoft, are also subjected to the FCO’s special abuse controls.
FCO’s Commitment to Fair Competition
Andreas Mundt, president of the FCO, stated:
“We are pleased that the Federal Court of Justice has upheld our decision. It is now confirmed by the highest court of appeal that Apple is subject to stricter abuse control. This means that our ongoing review of Apple’s tracking rules for third-party app providers is based on a solid foundation, and we are working vigorously on this as well as on other cases against the major digital companies.”
This ruling signifies a crucial step towards ensuring fair competition in the digital marketplace, particularly as regulators across Europe continue to scrutinize the operations of major tech firms.
For more information on competition law and digital regulation, you can visit the European Commission’s Competition page.
