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Apple Faces Fresh EU Complaint as It Fights Digital Markets Act in Court

Two civil-rights groups say a €1,000,000 standby letter of credit together with restrictive App Store terms block smaller developers, breaching EU gatekeeper rules.

Overview

  • Article 19 and Germany’s Society for Civil Rights filed a complaint to the European Commission alleging Apple’s App Store terms and device rules violate the DMA, singling out a €1,000,000 stand-by letter of credit as prohibitive for SMEs.
  • The groups urged enforcement action, noting the DMA empowers the Commission to impose fines of up to 10% of a company’s global annual revenue.
  • Separately at the EU General Court in Luxembourg, Apple argued the DMA imposes “hugely onerous and intrusive burdens” that conflict with security, privacy and property-right protections.
  • Apple’s challenge targets interoperability obligations for iPhone hardware and services, the App Store’s designation as a covered service, and the Commission’s past probe into whether iMessage should fall under the law.
  • Commission lawyers countered that Apple’s “absolute control” creates a “walled garden” yielding “supernormal profits” and locking in over a third of European smartphone users, as Apple also appeals a €500 million DMA fine issued in April.