EU cracks down on Google and Apple amid big tech regulations
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The European Union (EU) has escalated its regulatory actions against Google and Apple, warning both tech giants to comply with the Digital Markets Act (DMA) or face significant penalties.
This move is part of a broader effort to rein in Big Tech and has the potential to heighten tensions with US President Donald Trump, who has previously criticised the EU’s antitrust measures.
The European Commission accused Google, owned by Alphabet, of breaching the DMA by giving preferential treatment to its own services within its search ecosystem. Regulators also criticised the company for restricting app developers from directing users to alternative offers outside of Google’s Play Store. These violations could result in substantial fines if the company fails to comply with EU regulations, reported Bloomberg.
Google has been under increasing scrutiny in the EU, particularly regarding its dominance in search. Last year, it lost a court appeal against a €2.4 billion ($2.6 billion) fine for leveraging its monopoly power to suppress competition in shopping-related search results.
Oliver Bethell, Google’s senior competition director, argued that the EU’s decision could lead to worse experiences for European users rather than improving competition.
Meanwhile, Apple has been instructed to loosen its restrictions on the iPhone operating system to align with the DMA, which aims to curb monopolistic practices. While Apple’s case does not yet come with direct fines, the company is expected to face financial penalties in the coming weeks for allegedly blocking developers from offering cheaper subscription options outside of its App Store. A previous violation of a similar nature led to a €1.8 billion fine for Apple.
Apple has pushed back against these measures, arguing that the EU’s regulations could harm user privacy and security. In response, EU Antitrust Chief Teresa Ribera dismissed these claims, suggesting that Apple’s opposition is more about protecting its business model than safeguarding user privacy.
The EU’s latest actions may further strain relations with the United States, particularly with Trump's administration. The US president has criticized EU antitrust fines, equating them to tariffs on American companies. As the US and EU navigate trade tensions, additional fines on Big Tech could be seen as provocations by the White House.
Despite the potential political backlash, the EU remains firm in enforcing the DMA. Regulators have the authority to impose fines of up to 10% of a company’s global revenue for violations, though such penalties are rarely enforced at maximum levels.