KARLSRUHE, Germany, March 18 (Reuters) - Apple ( AAPL )

lost its challenge at Germany's top civil court on Tuesday

against its classification as a significant market power, a

label which gives antitrust regulators more scope and

flexibility to scrutinise its business practices.

Judges at the Federal Court of Justice backed the German

cartel office's 2023 designation of Apple ( AAPL ) as a "company of

paramount cross-market significance for competition".

With that, Apple ( AAPL ) joins Google parent Alphabet and

Facebook owner Meta on Germany's growing list of tech

giants 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 in 2023 is seen as the

benchmark.

Apple ( AAPL ) 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 to Reuters.

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 ( AAPL )

legal team.

Apple's ( AAPL ) 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 ( AAPL )

is subject to stricter abuse control," Mundt said.

"Our ongoing review of Apple's ( AAPL ) 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.