In a move to counter the European Union's stringent regulations set forth by the Digital Markets Act (DMA), Apple has lodged an appeal against the decision that would impose new obligations on its App Store. According to reports from Reuters, Apple is challenging the European Commission's classification of its App Store and iMessage service, claiming errors in their treatment.
The appeal contends that the Commission's categorization of the App Stores on various Apple devices, including iPhone, iPad, Mac, Apple TV, and Apple Watch, as a single entity is founded on "material factual errors." Apple argues that these stores cater to specific platforms and device types, thus differing in their distribution of apps.
The European Commission is not limiting its investigation solely to the App Store, as it is also exploring whether iMessage should be labeled as a core platform service under the DMA. If designated as such, Apple might be compelled to make its messaging service interoperable with others. Apple contests this potential classification, stating that iMessage is not fee-based or monetized through hardware sales or personal data.
Coincidentally or not, Apple recently revealed plans to support Rich Communication Services (RCS) on iPhones in 2024. RCS, touted as the successor to SMS and MMS, is a cross-platform standard. Apple aims to support RCS alongside iMessage, using distinctive blue and green bubbles to differentiate between messaging standards. The impact of this announcement on the EU's investigation into iMessage remains uncertain.
Designation as a "core platform service" under the DMA entails significant obligations for Apple concerning its App Store. Gatekeepers, or companies operating core platform services, are prohibited from favoring their products over rivals, must allow business users to promote external services, and cannot mandate developers to use specific services such as payment systems.
These rules address longstanding grievances from companies like Epic Games and Spotify about Apple's App Store practices. Apple, acknowledging 123 million monthly active users in the EU, faces mounting scrutiny not only under the DMA but also the Digital Services Act. The DMA designations for Safari and iOS, announced by the European Commission in September, add further regulatory pressure at the browser and operating system levels.
Apple's appeal is part of a broader confrontation with European regulators, including a protracted dispute over a €13 billion tax bill in Ireland, investigations into Apple Pay, and scrutiny of App Store policies. While Apple appeals the EU's decision, it is obligated to comply with the DMA rules by March 6th, as reported by Bloomberg. The tech giant has hinted at anticipating future business changes, including those influenced by legislative initiatives impacting the App Store.