One of the best bulwarks against monopoly is interoperability—that is making a new product or service work with an existing product or service. Interoperability allows users, and not the manufacturers of their devices or largest player in a market, to decide what application best serves them. Unsurprisingly, companies like Apple have worked hard to resist interoperability requirements.
On July 8, the General Court of the European Union (General Court) ruled against Apple in several cases the company brought against the European Commission (joint cases), affirming the company’s obligations under the Digital Markets Act (DMA). Apple argued in the cases that it should be exempted from the law’s requirements especially with regards to interoperability on multiple grounds. We applaud the General Court’s decision, and congratulate the Free Software Foundation Europe (FSFE) as well as others who intervened in support of the Commission against Apple’s attempt to shirk off its responsibilities, thus ensuring fair competition in European markets.
A Positive Development for Europeans
This is a clear and substantive win for developers and users in Europe. The stranglehold Apple exerts over its ‘walled garden’ is injurious for developers, users, and researchers alike. By confirming Apple’s obligations under the DMA, the General Court has ensured that developers will be given more choice on where they can publish their apps, and users will have more options to obtain apps which, for whatever reason, Apple dislikes. And researchers will have less roadblocks and hurdles to overcome in their studies of Apple’s OSes, particularly iOS, iPadOS, and watchOS.
Apple argues that the interoperability requirements will force it to lower the security standards that have led Apple products’ users to trust their devices. While this self-serving logic is not entirely without merit, it is far from the inevitable outcome. Especially with regards to the App Store, users can be given clear, informed choice when leaving the Apple ecosystem to obtain apps elsewhere. While we urge European courts to take Apple’s security concerns seriously, we’ve previously noted that this should not be used as a smokescreen to protect anticompetitive behavior.
Interoperability and security are not inherently at odds. When interoperable functionality is worked into the security model of a platform from the ground-up, a proper balance can be struck between two forces that are often falsely framed as naturally conflicting. While Apple OS platforms have not been built this way from the get-go, it is still possible, but takes more time to get it right. Here, the devil is in the implementation details.
Apple’s Case Arguments and the Court’s Rebuttal
Under the DMA, designation as a ‘gatekeeper’ is reserved for the biggest of Big Tech, companies that provide services deemed essential for businesses to reach end users. Apple is one of only seven companies that meet this designation, along with Alphabet, Amazon, Booking, ByteDance, Meta, and Microsoft. In its case, Apple argued that Article 6(7) of the DMA, specifying interoperability requirements for gatekeepers aimed at restoring fair competition, is unlawful in light of the Charter of Fundamental Rights of the European Union (specifically the right to property), and as such its designation as a gatekeeper subject to the requirements is unlawful and should be annulled as a result. In its ruling, the General Court rejected the argument as Article 6(7) does not form the legal basis of the designation.
Apple separately argues that the App Store fails to meet the requirements defining a core platform service (CPS), since the various stores (across iOS, iPadOS, watchOS, macOS) do not constitute a single platform. A company’s gatekeeper status relies on it providing a CPS that is an important gateway for business users to reach end users. Here, the implications of the argument are clear: remove service designation as CPSes, remove the gatekeeper status. The court rejected the argument on the basis that “irrespective of the device on which it was available, each of the App Stores was used for the same purpose, namely to intermediate between end users and business users in the distribution of applications and in-app digital content.”
Finally, the court rejected as inadmissible Apple’s argument that iMessage should not be classified as a number-independent interpersonal communication service (NIICS) constituting a CPS. This decision rested on the fact that the “classification does not, by itself, produce binding legal effects that bring about a change in Apple’s legal position” since iMessage was not listed as an “important gateway” in the designation decision and therefore was not subject to the DMA obligations.
In ruling against Apple in favor of the European Commission, the General Court has set an important precedent in ensuring competitive fairness and openness in the digital marketplace. The landmark effects of the DMA will serve to benefit all Europeans in the choice and freedom it affords them. Despite Big Tech’s legal challenges, these decisions build a strong foundation for a better digital future—a lesson which other regions should learn from and take note.