On Tuesday, the Court of Justice of the European Union ruled that Dutch courts are entitled to handle antitrust damages claims against Apple tied to alleged unfair practices in its App Store, Reuters reports.
The case began when a group of app developers and other digital service providers challenged the fees and commercial rules that Apple enforces inside the App Store. These companies argued that Apple imposes unfair restrictions on payment systems and limits competition in ways that harm both developers and consumers.
Dutch regulators have taken a similar view in recent years. They previously ordered Apple to change parts of its App Store policy for dating apps and also imposed a large series of fines until the company adjusted its terms.
Apple contested those decisions and argued that only courts in Ireland should handle such matters, because its European headquarters are located in Cork. The company has consistently stated that its App Store rules protect users and guarantee a safe environment in which developers can operate.
The ruling from the European court rejected the idea that proceedings must be limited to Ireland. Judges said that Dutch courts have jurisdiction because the commercial effects of the App Store rules directly impact businesses operating inside the Netherlands. This means that Dutch judges are free to evaluate whether Apple abused a dominant position in the market for app distribution on iPhone.
The introduction of the Digital Markets Act has also strengthened authorities by giving them new powers to examine business practices that may reduce competition. Apple faces several ongoing investigations linked to the Digital Markets Act, including issues related to app distribution, payment choices and access for developers to parts of its mobile platform.
The Dutch competition authority welcomed the decision and said it would continue its work on creating fairer digital markets. The ruling is also expected to encourage other European regulators who want to investigate similar claims that relate to app store rules and payment systems.
For Apple the latest development adds another layer of scrutiny at a moment when the company is dealing with regulatory pressure in several major regions.
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