In 2023, the Bundeskartellamt, the German competition authority, designated Apple as an "undertaking of primary importance for competition in several markets," like Alphabet (Google) and Meta. Companies that are part of this club may be subject to measures to limit their market dominance.
The German competition regulator takes control
Apple didn't see it that way when it appealed this decision. Two years later, the Federal Court of Appeal rejected Apple's arguments, and therefore sides with the Bundeskartellamt. The German judges did not want to consult the European Court of Justice in Luxembourg, as Apple's lawyers wanted.
The company disagrees with the ruling, which "neglects the value of a business model that places user privacy and security at the heart of its priorities," it told Reuters. Arguments repeated ad nauseam to counter demands for an open ecosystem... and which never bear fruit. Apple has thus had to accept alternative stores in the EU, without any privacy or security catastrophes having occurred. As it turns out, it must be possible.
In concrete terms, German competition authorities now have a free hand to exercise greater oversight over Apple's activity. "This means that the highest court has confirmed that Apple is subject to stricter control in matters of abuse," said Andreas Mundt, President of the Bundeskartellamt. "Our ongoing review of Apple's third-party app tracking regulations is therefore based on solid foundations, and we are working hard on this and other cases involving major internet companies," he added.
The authorities are demanding accountability for the ad tracking system that Apple imposes on developers. The manufacturer is accused of giving itself preferential treatment at the expense of developers and publishers.
Source: Reuters
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