EU Escalates Digital Rules Enforcement Against Tech Giants Apple and Google
European Union regulators have intensified scrutiny of Apple and Google, issuing fresh warnings about potential breaches of the bloc’s stringent digital regulations. This action is anticipated to heighten tensions between the EU and Washington.
Antitrust Concerns Raised Over Search and App Store Practices
The European Commission, the EU’s chief antitrust authority, has formally cautioned Google regarding potential substantial penalties. The commission alleges that Google may be prioritizing its own services within search results, disadvantaging competitors. Furthermore, concerns were raised about restrictions on app developers seeking to guide users away from Google’s Play Store for Android.
Apple Faces Scrutiny Over iOS Interoperability
In a separate move, the Commission alerted Apple, led by Tim Cook, about the necessity to grant rival developers enhanced access to iOS, the operating system powering iPhones. This measure aims to bolster “interoperability” and ensure adherence to the Digital Markets Act (DMA). Apple has voiced apprehensions that increased access could compromise user privacy.
Digital Markets Act Targets Internet “Gatekeepers”
Both Apple and Google are under investigation within the framework of Europe’s Digital Markets Act. This legislation targets seven companies designated as internet “gatekeepers”: Google’s parent firm Alphabet, Amazon, Apple, Booking.com, TikTok’s parent ByteDance, Meta, and Microsoft. Violations can lead to fines of up to 10% of a company’s global revenue, potentially reaching billions of dollars.
“Our primary objective is to foster a culture of compliance with the Digital Markets Act,” stated EU antitrust head Teresa Ribera.
EU’s Tech Crackdown Amidst Trade Friction with the U.S.
The EU’s intensified regulatory actions against American tech firms have become a prominent point of contention in its ongoing trade friction with the United States. Previous administrations have expressed concerns about the EU’s approach.
The prior administration was contacted for comment.
U.S. Concerns Over EU Digital Taxes and Fines
A prior administration official had previously characterized the EU’s fines as “overseas extortion,” and issued a memo indicating potential retaliatory measures. These measures could include tariffs to counter digital service taxes, fines, and policies imposed on American companies by foreign governments.
“The U.S. administration will not permit foreign governments to appropriate America’s tax base for their own benefit,” the White House stated at the time.
Google Contests EU Antitrust Action
Currently, only the warning directed at Google explicitly carries the threat of financial penalties.
Google responded to the EU’s recent action in a blog post, asserting that it increases “the risk of a diminished experience for European users.”
“While the DMA aims to regulate large platforms like Google, Apple, and Meta and stimulate competition, it is, in reality, having the opposite effect by disadvantaging European businesses and consumers,” Google argued.
Apple Criticizes Regulatory Overreach
Apple also voiced strong opposition to the regulatory stance.
“Today’s decisions encumber us with bureaucracy, impeding Apple’s capacity to innovate for European users and compelling us to provide new features without cost to companies that are not subject to the same regulations,” Apple asserted in a statement.
“This is detrimental to our products and to our European users. We will continue dialogue with the European Commission to enhance their understanding of our concerns on behalf of our users,” the company added.
U.S. Lawmakers Question EU Enforcement of DMA
Last month, a U.S. House committee leader requested clarification from EU antitrust chief Ribera regarding the enforcement mechanisms for the Digital Markets Act.
The lawmaker highlighted that the majority of the “gatekeeper” companies affected by the law are of American origin.
“These significant fines appear to serve dual purposes: to mandate adherence to European standards globally and to function as a European levy on American enterprises,” a letter from the lawmaker stated.