In a move that has sparked further controversy surrounding the European Union's Digital Markets Act (DMA), tech giant Apple has officially joined Meta and TikTok in appealing the EU's designation of their services as "gatekeepers." The DMA is a strict antitrust law aimed at preventing unfair conditions imposed by gatekeepers on businesses and end users, ultimately ensuring the openness of important digital services.

The EU Court of Justice confirmed Apple's appeal on Friday, although no specific details about the legal challenge have been made public. However, sources reported that Apple's appeal is expected to focus on challenging the gatekeeper status of its App Store, iOS operating system, and Safari browser.

Apple had previously argued that its App Store should be considered as five separate marketplaces offered across different devices such as iPhones, iPads, Mac computers, Apple TVs, and Apple Watches. However, the EU disagreed, stating that the App Store serves a common purpose across all Apple devices, regardless of their nature and function.

Similar arguments were made by Apple regarding its iOS operating system and Safari browser. Apple claimed that each device required a uniquely designed operating system, therefore categorizing them as separate gatekeepers. However, the EU determined that only the iOS operating system meets the threshold as a gatekeeper, and Safari is considered a single web browser providing the same services across devices.

Meta, formerly known as Facebook, was the first to appeal the gatekeeper designation for its Messenger and Marketplace services. Meta argues that Facebook, Instagram, and WhatsApp should be considered gatekeepers, while Messenger and Marketplace are merely functionalities of Facebook and should be excluded from the DMA's scope. Shortly after, ByteDance, the parent company of TikTok, followed suit and appealed TikTok's gatekeeper status, emphasizing that as a newcomer, TikTok does not hold an "entrenched" position.

Both Meta and TikTok question the classification of their services and believe that the EU's designation fails to consider their contribution to competition and innovation. Meta's appeal seeks clarification on specific points of law regarding Messenger and Marketplace, while TikTok argues that being designated as a gatekeeper contradicts the DMA's purpose of promoting a level playing field for challengers in the market.

The appeals from Apple, Meta, and TikTok come amidst ongoing market investigations into other tech companies, including Microsoft and Google. These investigations aim to assess whether certain core platform services meet the criteria for gatekeeper status. Rebuttals have been granted to Google and Samsung, leading to the exclusion of specific services from the DMA's scope.

The outcome of these appeals remains uncertain, as the European Commission has stated that only "exceptional circumstances" would enable a tech company to avoid being designated as a gatekeeper if they meet the threshold. Meanwhile, the Commission continues its work with all gatekeepers to ensure the effective implementation of the DMA by the designated deadline.

The DMA, set to take effect on March 7, 2024, will enforce regulations requiring companies with significant user bases and market capitalizations to allow third-party apps and app stores on their platforms. It will also prevent platforms from favoring their own services over competitors and using data in ways that hinder competition.

As the appeals process unfolds, the tech industry and regulatory bodies will closely observe how these challenges to gatekeeper designation impact the future of digital markets in the European Union.