Apple lost its appeal against its designation as a substantial market power, which allows antitrust authorities greater latitude and flexibility to examine the company’s business operations, before Germany’s top civil court on Tuesday.
TakeAway Points:
- Apple lost its challenge at Germany’s top civil court against its classification as a significant market power, a label that gives antitrust regulators more scope and flexibility to scrutinize its business practices.
- Oracle said on Wednesday it would give Singapore’s defense technology agency with “isolated” cloud computing and AI services, in the company’s first such arrangement in Southeast Asia.
Apple faces more scrutiny
Judges at the Federal Court of Justice backed the German cartel office’s 2023 designation of Apple as a “company of paramount cross-market significance for competition.
With that, Apple joins Google parent Alphabet and Facebook owner Meta on Germany’s growing list of techgiants, subject to possible measures curbing their dominance.
Regulators worldwide have in recent years cracked down on Big Tech in an effort to open up markets to rival start-ups and give consumers more choice. The European Commission’s Digital Markets Act(DMA), which became law in2023, is seen as the benchmark.
Apple said it faced tough competition in Germany and that it disagreed with the court’s decision.
“It neglects the value of a business model that places the privacy and security of users at its centre,” a spokesperson for the company said in an emailed statement.
While the court ruling is a win for the German antitrust watchdog, the crackdown by powerful EU regulators is more of a threat to Big Tech, said Assimakis Komninos, a partner at White & Case.
“The Court is saying that German legislation can stand. But the Digital Markets Act’s scope is not affected and in real life it basically remains the primary standard for Big Tech,” he said.
A judge had indicated in January that the German court would side with the regulator.
The court also declined to consult with the European Court of Justice in Luxembourg on the case, as requested by Apple’s legal team.
Apple’s App Store has faced particular scrutiny in Europe, where regulators have flagged concerns over the wealth of data it gathers on user behaviour.
Cartel office president Andreas Mundt welcomed the court ruling in a statement.
“This means that the highest court has confirmed that Apple is subject to stricter abuse control,” Mundt said.
“Our ongoing review of Apple’s tracking regulation for third-party apps is therefore on a solid footing, and we are working flat out on this case and other cases against the major internet companies,” he added.
Oracle to provide cloud computing and AI services to Singapore military
Oracle said on Wednesday it would provide Singapore’s defense technology arm with “isolated” cloud computing and AI services, in the company’s first such deal in Southeast Asia.
Southeast Asian governments are frequent targets of cyber espionage campaigns and are facing escalating supply chain attacks, according to security researchers.
Under the deal, the U.S firm will provide Singapore’s armed forces and defense ministry with an “air-gapped” isolated cloud computing infrastructure – meaning that it will be cut off from the internet and connected instead to classified networks via encrypted devices.
“We’re bringing our generative AI tools across the air gaps and into those isolated environments ,” said Oracle Global Defense Chief Technology Officer Rand Waldron.
He highlighted the technology includes AI data and imagery capabilities, including the ability for the AI to analyze video streams for faces, licenses, or details of cars.
Oracle has ramped up activities in Southeast Asia. It announced it planned to invest more than $6.5 billion to set up a cloud region in Malaysia in October.
