Apple Loses Appeal in Germany Over 'Special Abuse Control'

Apple's German Antitrust Appeal Rejected

Despite its considerable success within the technology sector, Apple has encountered a setback. The company’s appeal against special abuse controls imposed by Germany’s competition authority has been unsuccessful.

This ruling, delivered by Germany’s Federal Court of Justice on Tuesday, as reported by Reuters, upholds the regulatory designation applied by the Federal Cartel Office (FCO) in April 2023. The designation will remain in effect for five years.

Leveling the Competitive Landscape

The implemented controls are designed to foster a more equitable competitive environment, specifically targeting large digital corporations. This decision adds to the growing number of similar regulations Apple faces, including the European Union’s Digital Markets Act (DMA).

The FCO has expressed concerns that Apple’s App Tracking Transparency framework may constitute self-preferencing, a practice prohibited under the regulatory regime.

Consequently, Apple may be required to extend the same data collection permissions to its own advertising efforts as it mandates for third-party applications through permission requests.

Apple's Response

In response to the failed legal challenge, Apple released a statement expressing its disagreement with the court’s decision. The company maintains that it operates within a highly competitive German market.

“Apple is proud to be an engine for innovation, job creation, and competition in every market where we operate,” the statement read. “We disagree with the FCJ’s decision today to uphold the FCO’s designation, which discounts the value of a business model that puts user privacy and security at its core.”

Other Tech Giants Under Scrutiny

Apple is not alone in facing these heightened regulatory measures. Other prominent technology companies, including Google, Meta, and Microsoft, are also subject to the FCO’s special abuse controls.

FCO President's Statement

Andreas Mundt, president of the FCO, stated: “We are pleased that the Federal Court of Justice has upheld our decision. It is now confirmed by the highest court of appeal that Apple is subject to stricter abuse control.”

He further added that the ruling solidifies the foundation for the FCO’s ongoing review of Apple’s tracking rules for third-party app developers, alongside other investigations targeting major digital companies.