Apple has lost a major legal challenge against the European Union's landmark Digital Markets Act (DMA), with the EU's General Court upholding the company's designation as a "gatekeeper" for its App Store and iOS operating system, reinforcing the bloc's efforts to curb the market power of major technology firms.

In a ruling issued on Wednesday, the Luxembourg-based General Court dismissed Apple's appeal against the European Commission's decision to classify its App Store and iOS as core platform services subject to the DMA's strict competition requirements.

"The General Court dismisses Apple's actions regarding its designation as a gatekeeper in relation to the App Store and iOS," the tribunal said.

The court also ruled that Apple's challenge concerning its iMessage service was inadmissible, noting that the messaging platform is not currently subject to the DMA's gatekeeper obligations because it has not been formally designated as an important gateway service under the regulation.

The decision marks another significant victory for the European Commission as it seeks to enforce the Digital Markets Act, legislation that came into force in 2023 to limit the dominance of the world's largest technology companies and create more opportunities for smaller competitors.

Under the DMA, designated gatekeepers are required to open key platform services to greater competition, allowing rival app stores, payment systems and digital services to interoperate more freely with dominant ecosystems. Companies found in breach of the rules face fines of up to 10 percent of their global annual turnover, with repeated violations potentially leading to structural remedies.

Apple criticized the ruling and reiterated its opposition to the legislation.

"We firmly believe the DMA's mandate goes beyond what is lawful and proportionate, threatening to erode decades of privacy and security protections we've built and leaving our users vulnerable to new risks," an Apple spokesperson said.

The company added that it would continue advocating for what it described as innovation, privacy and security protections for European users. Apple retains the right to appeal the judgment on points of law before the Court of Justice of the European Union.

Apple brought the case after the European Commission designated the company's five App Stores—serving the iPhone, iPad, Mac, Apple TV and Apple Watch—as a single core platform service under the DMA.

Judges sided with the Commission, concluding that the various App Stores perform the same essential function by connecting developers with users and facilitating software distribution, regardless of the device involved.

The company had also challenged the designation of iOS as an essential gateway for businesses to reach consumers, arguing that the obligations requiring greater interoperability with competing services were unwarranted.

The latest ruling comes as the European Commission continues to intensify enforcement of the Digital Markets Act. Regulators are conducting several compliance investigations into major technology companies, including Apple, over issues such as App Store policies, interoperability requirements and restrictions on developers directing users to alternative payment methods.

The decision is expected to strengthen the Commission's hand in ongoing regulatory actions against large digital platforms, including investigations involving Apple, Meta, Alphabet and ByteDance. EU officials have repeatedly stated that the DMA is intended to promote innovation, expand consumer choice and ensure fair competition in digital markets by preventing dominant firms from using their market power to disadvantage rivals.

With Wednesday's judgment, Apple faces increasing pressure to continue adapting its European business practices to comply with the bloc's evolving digital competition framework while broader legal and regulatory scrutiny of Big Tech remains a central priority for EU policymakers. (ILKHA)