It is suggested by a judge that Apple could potentially be subjected to additional antitrust regulations in Germany.


Headquarters of Germany’s Bundeskartellamt

Apple is facing increased scrutiny in Germany due to its market dominance. A German federal court has indicated that the country’s antitrust regulator may prevail in the legal battle.

Apple is challenging the Bundeskartellamt antitrust regulator in court over the possibility of being subjected to extended anti-competition measures in Germany. However, it seems Apple’s arguments may not succeed.

On Tuesday, judges from the Federal Court of Justice deliberated for over three hours on whether Apple should face additional controls to promote competition in the market.

Presiding judge Wolfgang Kirchhoff mentioned that an evaluation indicated Apple could be considered significant enough across markets to warrant the additional controls, as reported by Reuters.

The court did not issue a ruling and requested more time for deliberation.

Apple’s legal team proposed discussing the matter with the European Court of Justice in Luxembourg before reaching a decision, citing potential discrepancies between EU and German laws. However, Judge Kirchhoff stated that the judges saw no grounds for such communication.

Competition checks

The lawsuit was initiated by the Bundeskartellamt in April 2023, based on the regulator’s belief that Apple fell under a 2021 amendment to the German Competition Act. This amendment introduced additional controls and checks for companies deemed to have significant impact on competition across markets.

Subsequently, the regulator swiftly launched an investigation into the App Store and Apple’s operations.

Bundeskartellamt president Andreas Mundt stated, “Apple operates a far-reaching digital ecosystem crucial to competition not only in Germany but also across Europe and globally.” Mundt highlighted Apple’s pivotal role in competition due to its control over iOS and the App Store.

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Apple’s lawsuit aims to challenge the regulator’s decision and avoid additional checks aimed at preventing anti-competitive behavior.

Currently, Google’s parent company Alphabet and Meta, the owner of Facebook, are subject to these extra controls.

As per the regulations, the Bundeskartellamt’s decision is valid for a five-year period starting from April 2023. Unless the court rules in Apple’s favor, the designation will remain in effect until April 2028.

This legal battle is separate from the regulator’s ongoing Apple-related activities. In June 2022, the Bundeskartellamt initiated an antitrust investigation into Apple regarding App Tracking Transparency, specifically examining complaints that ATT rules for third-party app developers did not apply to Apple.

Germany’s actions follow years of efforts by the EU and other governments to limit the power of tech giants in the market. The most recent measures, the Digital Markets Act and Digital Services Act, aim to compel gatekeepers to operate in a way that promotes competition.

These initiatives include requiring Apple to allow third-party App Store alternatives on iPhones in the EU and abolishing anti-steering rules, changes that Apple initially resisted but eventually accepted in some instances.