Apple’s Walled Garden on Trial: The Ongoing EU Court Battles

Apple is currently enmeshed in a series of high-stakes legal battles with the European Union, primarily centered on allegations of anti-competitive practices relating to its powerful “walled garden” ecosystem—specifically the App Store and its digital services.

These challenges are being waged under traditional EU antitrust laws and the bloc’s landmark new legislation, the Digital Markets Act (DMA).

The Digital Markets Act (DMA) Challenge
The most significant front in this legal war is Apple’s direct challenge to the DMA.

This sweeping law is designed to curb the dominance of “gatekeeper” tech platforms and force them to open their services to rivals.

• Core Complaint: Apple is challenging its designation as a “gatekeeper” and the specific obligations the DMA imposes on its iOS operating system, the App Store, and the Safari browser.

Key Issues:

• Interoperability: The DMA requires Apple to make its core services, like the iPhone’s operating system, more interoperable with competing devices and services (e.g., third-party app stores, alternative payment systems, and non-Apple hardware). Apple argues this compromises user security and privacy.
• Anti-Steering Rules: The EU has fined Apple €500 million (approx. $581 million) for breaching the DMA’s anti-steering rules. This violation stems from Apple restricting app developers from “freely communicating, promoting offers, and contracting with end users” outside of the App Store—a practice that forces developers to use Apple’s in-app purchasing system and pay its commissions.
• Alternative App Distribution: The EU is scrutinizing Apple’s new contract terms for allowing alternative app distribution, including the “Core Technology Fee,” which critics argue still creates significant barriers for developers.

Traditional Antitrust Cases

Beyond the DMA, Apple is also battling charges under long-standing EU antitrust rules, with two key areas under scrutiny:

1. Music Streaming and App Store Commissions

• The Spotify Complaint: The initial investigation was spurred by a complaint from music streaming giant Spotify.
• The Fine: The European Commission levied a €1.8 billion fine (approx. $2 billion) against Apple.
• The Violation: The fine was for abusing its dominant position by forbidding music streaming apps from informing users within the app about cheaper subscription alternatives available outside of the App Store. The EU argues this practice led to higher prices for consumers.

1. Near-Field Communication (NFC) and Mobile Payments

• The Issue: The European Commission preliminarily concluded that Apple abused its dominant position by restricting third-party mobile wallet developers’ access to the iPhone’s NFC (Near-Field Communication) ‘tap-and-go’ technology, effectively reserving it only for Apple Pay.
• The Resolution: Apple has offered legally binding commitments to open up NFC access to rival mobile wallet developers in the European Economic Area (EEA), which the Commission has accepted to resolve its competition concerns in this specific area.

The Immediate Future

The legal challenges mean Apple must adjust its business practices in Europe, often reluctantly, while simultaneously fighting the DMA’s legal basis in court. A recent ruling by the Court of Justice of the European Union (CJEU) also confirmed that Dutch courts have jurisdiction to hear a local antitrust case against Apple’s App Store—a win for consumer foundations seeking damages against the company.

This unprecedented level of scrutiny from Brussels signals a new era of tech regulation, where global tech giants must conform to the EU’s vision of open and fair digital markets, or face substantial fines and mandated changes to their core business models.