Apple (AAPL, Financials) filed a legal challenge Monday disputing the European Commission’s order requiring the company to open up its ecosystem under the Digital Markets Act. Apple said the mandate imposes “a process that is unreasonable, costly, and stifles innovation,” adding that it poses “massive privacy and security risks” to users in the European Union.
The Commission’s order, issued in March, compels Apple to allow third-party devices and developers broader access to its mobile operating system and hardware technologies. Apple must respond to interoperability requests according to a fixed process and timeline while the legal proceedings unfold.
Apple argued that the rules unfairly single out its business model and could result in an inferior experience for European users. Although the company has taken legal action, it is required to comply with the EU order as the case proceeds through court.
Investors should watch how this regulatory pressure could impact Apple’s product design strategy, data control, and regional margins.
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