Being a highly successful big tech company has its drawbacks, as evident in Apple’s recent loss of an appeal against a specialized abuse control regime imposed by Germany’s competition watchdog last year. As a result, the iPhone manufacturer will continue to face tailored competition controls in a significant European market, in addition to other similar laws, such as the EU’s DMA.

According to a report by Reuters on Tuesday, Germany’s Federal Court of Justice has upheld the five-year regulatory designation on Apple, which was initially applied by the Federal Cartel Office (FCO) in April 2023. The special abuse controls regime aims to promote a level competitive playing field against digital giants.

In a development last month, the FCO expressed concerns that Apple’s App Tracking Transparency framework may constitute self-preferencing, which is prohibited under the regime. Consequently, Apple may be compelled to apply equal treatment to its own data collection for ads, similar to the requirements imposed on third-party apps through permission pop-ups.

In response to the failed legal challenge, Apple provided a statement via email, disagreeing with the court’s decision and reiterating that the company faces “intense competition in Germany.”

The statement further emphasized, “Apple is proud to drive innovation, job creation, and competition in every market where we operate. We disagree with the FCJ’s decision to uphold the FCO’s designation, which overlooks the value of a business model that prioritizes user privacy and security at its core.”

Apple is not the sole tech giant subject to the FCO’s special abuse controls, as Google, Meta, and Microsoft are also under similar scrutiny.