Apple lost its legal challenge in the EU General Court on July 8 regarding its designation as a gatekeeper under the Digital Markets Act [1].
The ruling prevents Apple from overturning the European Union's requirement that it open its App Store and iOS operating system to competition [2]. This decision reinforces the EU's power to regulate how dominant tech companies manage their ecosystems and third-party services [3].
The court in Brussels upheld the designation, meaning Apple must allow rival apps and services to operate on its platform [1]. The Digital Markets Act aims to prevent large tech firms from using their market position to stifle competition [2]. By maintaining the gatekeeper status, the court ensures that Apple cannot unilaterally restrict access to its software environment for competitors [3].
This legal defeat follows a series of financial penalties imposed by the European Union. In April 2025, the EU levied a €500 million fine against the company [4]. Previously, in March 2024, the EU imposed a €1.84 billion fine related to the App Store's anti-steering rules [5].
Apple sought to have the gatekeeper designation removed to regain more control over its proprietary ecosystem [2]. However, the General Court rejected the company's arguments, siding with the commission's view that Apple's control over iOS constitutes a significant barrier to entry for other developers [1].
The company must now comply with the full suite of DMA obligations, which include permitting third-party app stores, and allowing developers to steer users to offers outside the App Store [2]. Failure to adhere to these rules could result in further regulatory action or additional fines from the European Commission [3].
“Apple must keep its App Store and iOS operating system open to competition.”
This ruling signals a decisive shift in the power dynamic between global tech giants and European regulators. By upholding the gatekeeper status, the EU has established a legal precedent that prioritizes open competition over a company's right to maintain a closed 'walled garden.' For Apple, this means the iOS ecosystem in Europe will fundamentally differ from the rest of the world, potentially serving as a blueprint for similar regulatory pressures in other jurisdictions.
