Apple Appeals EU DMA Mandate To Open iPhone Ecosystem To Rivals

Apple (AAPL) reportedly filed a legal challenge against a European Union order released Monday, arguing that the rules are unreasonable and harm innovation, as they require the company to open its ecosystem to competitors like Meta Platforms (META) and Alphabet (GOOGL/GOOG) subsidiary Google.

According to a Wall Street Journal report, the legal dispute centers on the EU’s Digital Markets Act (DMA), a sweeping antitrust law adopted to rein in the influence of major tech companies. 

Apple filed an appeal against that decision to the European Union’s General Court in Luxembourg on May 30. Appeals at the court aren’t typically made public until a few days after they are filed.

In March 2024, the European Commission instructed Apple to grant competitors, including makers of smartphones, headphones, and virtual reality devices, access to key components of its iOS platform. This includes enabling third-party products to interface directly with iPhones and iPads, as well as responding to developer interoperability requests on a defined schedule.

Apple described the order as “unreasonable, costly, and stifling to innovation” in a statement. The company also warned that the DMA would force it to hand over sensitive user data to “data-hungry” rivals, potentially compromising security and privacy for EU customers. 

Apple contends that the rules unfairly target it, putting its ability to develop and deliver new features in the region at risk.

The dispute recalls Apple’s earlier conflict with Tencent-backed Epic Games, which used the DMA to push for the right to distribute its app store in Europe. Apple initially tried to revoke Epic’s developer account but reversed course following regulatory pressure.

Companies including Meta, Google, Spotify (SPOT), and Garmin have already sought access to Apple’s data and software under the DMA’s new framework.

The EU can impose penalties of up to 10% of a company’s worldwide annual turnover for breaches of the DMA.

Apple’s stock rose 0.13% in afternoon trading on Monday. The shares are down nearly 20% year-to-date but remain up by 4% over the past 12 months.

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