The European Commission has launched regulatory action against tech giants Google and Apple, accusing them of violating the Digital Markets Act (DMA). The Commission’s preliminary findings indicate that Google’s search engine prioritizes results for its own services and that Google Play restricts developers from promoting rival offers. Additionally, Apple has been instructed to open its operating systems to devices made by competitors. Failure to comply could lead to fines of up to 10% of global revenue or even 20% for repeat offenses. For instance, given Apple’s 2024 revenue of $391bn, the maximum fine could approach nearly $80bn.
Commission President Ursula von der Leyen stressed that the enforcement is simply about implementing the law to ensure a fair, transparent, and competitive digital market. Meanwhile, Apple and Google have pushed back. An Apple spokesperson argued that the new rules “slow down Apple’s ability to innovate” for its European users, while Google warned that the proposed changes could disrupt search results and reduce traffic to European businesses.
The move comes amid heightened transatlantic tensions, with US President Donald Trump warning of retaliatory tariffs on foreign goods if the EU continues to impose tougher regulations on American tech companies. The dispute over digital regulation is part of a broader confrontation, including debates over the US digital services tax and the EU’s sweeping Artificial Intelligence Act. Trump has indicated that such regulatory actions against US firms could influence his decisions on imposing additional tariffs.
The EU’s latest steps also include ongoing investigations into Meta over its “pay or consent” model, highlighting the Commission’s broad agenda to enforce competition rules in the digital space. As proceedings continue, the tech giants face significant uncertainty over potential fines and operational changes, all while global markets watch closely the unfolding regulatory clash between Europe and the US.
