Apple loses German appeal, paving way for strict control

FRANKFURT: Apple lost an appeal on Tuesday as Germany’s top court sided with competition regulators, opening the door for the US tech giant to face stricter controls in the country.

The Federal Court of Justice ruled that the regulator, the Federal Cartel Office, was correct when it decided in 2023 that Apple should be considered of “paramount significance for competition across markets”.

The classification opens a company operating in Germany up to closer surveillance for possible abuse of its market position, and has also been applied to Amazon, Microsoft and Google parent Alphabet.

Apple had appealed against being given the label but, in siding with regulators, the court found that the tech giant “is one of the largest, most profitable companies in the world”. “It has extraordinary financial and other resources at its disposal,” according to a ruling from the court, in the southwestern city of Karlsruhe.

Apple said it disagreed with the ruling, noting that it faced tough competition in Germany. The cartel office has for several years been investigating Apple’s rules into app tracking. Andreas Mundt, head of the regulator, said he was pleased with Tuesday’s ruling, which confirmed Apple could be subjected to “stricter” oversight.

“Our inquiry into Apple’s tracking rules for third-party apps is on solid ground thanks to this judgement,” he said. The regulator alleges that users are asked to consent to apps tracking their activity less often when using Apple services than when using third party apps, thereby allowing Apple an unfair advantage.