German Court Upholds Apple's Dominant Market Status, Allowing Stricter Oversight by Cartel Office

March 18, 2025
German Court Upholds Apple's Dominant Market Status, Allowing Stricter Oversight by Cartel Office
  • This ruling supports the Bundeskartellamt's classification of Apple as a major digital corporation, following a 2021 amendment to competition laws that allows for enhanced scrutiny.

  • On March 18, 2025, the Federal Court of Justice in Germany ruled that Apple holds significant cross-market importance for competition, enabling stricter oversight by the Federal Cartel Office.

  • The ruling underscores the contrasting approaches of US and European antitrust laws, with Europe focusing on the potential for consumer harm rather than requiring evidence of actual harm.

  • In 2023, the Bundeskartellamt determined that Apple possessed substantial market power, a classification Apple contested but was ultimately upheld by the court.

  • The court's decision does not require proof of actual harm to competition; rather, it acknowledges potential threats, with the ruling effective for five years.

  • This verdict reflects a growing trend of regulatory scrutiny on major tech companies, emphasizing their impact on market competition.

  • The ruling aligns with broader efforts in the EU to limit the market power of tech giants through legislation such as the Digital Markets Act.

  • The ruling may accelerate investigations into Apple's tracking policies, as the Bundeskartellamt reviews whether these practices unfairly disadvantage third-party app developers.

  • The FCO highlighted that Apple's two billion active devices grant it substantial power to dictate terms for third parties and control customer access.

  • Concerns were raised regarding Apple's App Stores, which provide the company with deep insights into competitive data, potentially disadvantaging competitors.

  • The court emphasized that it is sufficient for a company to have the potential to harm competition to be deemed dominant in the market.

  • This ruling marks the second occasion the BGH has upheld the Bundeskartellamt's findings, following a similar decision regarding Amazon in April 2024.

Summary based on 18 sources


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