KARLSRUHE, Germany (Reuters) – Apple lost an appeal on Tuesday against a regulatory assessment that opens the iPhone maker up to stricter controls in Germany, the Federal Court of Justice ruled on Tuesday, following years of debate over the company’s market position.
Federal judges backed the German cartel office’s 2023 designation of Apple as a “company of paramount cross-market significance for competition”.
With that, Apple joins Google parent Alphabet and Facebook owner Meta on Germany’s growing list of tech giants subject to possible measures curbing their dominance.
Apple said it faced tough competition in Germany and that it disagreed with the court’s decision.
“It neglects the value of a business model that places the privacy and security of users at its centre,” a spokesperson for the company said in an emailed statement to Reuters.
A judge had indicated in January that the court would side with the regulator.
The court also declined to consult with the European Court of Justice in Luxembourg on the case, as requested by Apple’s legal team.
Apple’s App Store has faced particular scrutiny in Europe, where regulators have flagged concerns over the wealth of data it gathers on user behaviour.
Cartel office president Andreas Mundt welcomed the court ruling in a statement.
“This means that the highest court has confirmed that Apple is subject to stricter abuse control,” Mundt said.
“Our ongoing review of Apple’s tracking regulation for third-party apps is therefore on a solid footing, and we are working flat out on this case and other cases against the major internet companies,” he added.
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