Monday, December 2, 2024

Apple appeals after EU’s tough new DMA rules target App Store

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Apple is appealing a European Union decision that would see its App Store hit with tough new obligations under the Digital Markets Act (DMA). Reuters reports that its plea argues against the European Commission’s designations of its App Store and the iMessage service.

According to Reuters, Apple argues that the Commission’s treatment of the App Stores on iPhone, iPad, Mac, Apple TV, and Apple Watch as a single store is based on “material factual errors,” as they all distribute apps for a specific platform and type of device.

As well as the App Store, the European Commission is also investigating whether iMessage should also be designated as a core platform service under the DMA, which could result in Apple being forced to make its messaging service interoperable with others. The Commission marked iMessage as a “number-independent interpersonal communications service” deserving investigation, and Reuters reports that Apple opposes that, saying it’s not fee-based or monetized by the sale of hardware or personal data.

In what is unlikely to be a coincidence, Apple recently announced iPhones will get support for RCS, a cross-platform standard pitched as the successor to SMS and MMS in 2024. Apple says it intends to support RCS “alongside iMessage” and will still use blue and green bubbles to distinguish between messaging standards. It is unclear what impact the announcement could have on the EU’s investigation into iMessage.

Being designated as a “core platform service” under the DMA would create a range of obligations for Apple with regards to its App Store. As this EU FAQ explains, gatekeepers (aka the companies that operate core platform services) are not allowed to favor their own products or services over rivals on their platforms, need to allow business users to promote services offered outside of the platform, and cannot force developers to use specific services like payment systems.

The rules have the potential to address key complaints from companies like Epic Games and Spotify about the way Apple operates its App Store. The iPhone maker recently said that its App Store has 123 million monthly active users in the EU in a disclosure relating to the EU’s separate-but-related Digital Services Act regulation.

Although it’s appealing the EU’s decision, Apple will still need to comply with the rules by March 6th while its appeal is processed, Bloomberg previously reported. The company recently said in a filing that it “expects to make further business changes in the future, including as a result of legislative initiatives impacting the App Store.” 

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