Apple (AAPL) Filed Its Appeal Against the EU’s DMA Order

Apple (AAPL) is fighting back against a European Union order that requires the tech company to make its iOS operating system more open to competitors. This rule is part of the Digital Markets Act (DMA), which aims to limit the power of big tech companies. For Apple, that means letting apps, headphones, and other devices from competitors access certain iPhone features, like showing notifications or connecting to Wi-Fi networks that only Apple’s own products normally can. As a result, Apple officially filed its appeal to the EU’s General Court in Luxembourg on May 30.

Apple argues that complying with the DMA would damage the unique, tightly integrated experience that users expect from its ecosystem. The company states that the EU’s demands would not only be costly and unreasonable but also pose risks to user privacy and security. According to Apple, some companies are already requesting access to sensitive user data that even Apple itself doesn’t access. Unsurprisingly, a spokesperson said that these rules unfairly single out Apple and would make it harder for the company to keep innovating in Europe.

Apple also warned that forcing interoperability could put users’ privacy at risk by handing over control to “data-hungry” competitors. The company emphasized that it is appealing these decisions on behalf of its European customers to maintain the quality and security they expect. Meanwhile, the European Commission stands by its ruling and says it will defend the legality of the DMA in court. Under the law, companies that don’t comply could face fines of up to 10% of their global annual revenue or even be forced to break up parts of their business in extreme cases.

Is Apple a Buy or Sell Right Now?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $228.22 per share implies 13.5% upside potential.

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