The European Commission has accused Google and Apple of breaching the Digital Markets Act (DMA), a move that could fuel trade disputes with the United States. The regulatory action, announced on Wednesday, targets the tech giants’ alleged anti-competitive practices and could lead to hefty fines.
Under the DMA, companies that violate the rules face penalties of up to 10% of their global revenue, increasing to 20% for repeat offenses. Given Apple’s 2024 revenue of $391 billion, the fines could exceed $80 billion if enforced at the maximum rate.
The case has also drawn political attention, with former President Donald Trump warning that tougher EU regulations on American tech firms could prompt retaliatory tariffs on European goods.
EU’s Allegations Against Google and Apple
The European Commission’s preliminary findings indicate that Google and Apple have failed to comply with key provisions of the DMA.
- Google’s Practices: The EU alleges that Google favors its own services in search results, disadvantaging competitors. Additionally, the Commission claims that Google Play prevents app developers from directing users to alternative payment methods, limiting consumer choice.
- Apple’s Restrictions: Apple has been ordered to make its operating system more accessible to competing devices, such as smartphones and wireless accessories. Regulators also want Apple to follow a transparent process for handling developer requests seeking broader access to its ecosystem.
Apple responded by criticizing the EU’s decision, arguing that the regulations hinder innovation and force the company to offer proprietary features to competitors for free. Google’s senior competition director, Oliver Bethell, warned that the ruling could reduce search efficiency and hinder investment in Android and Play services.
Growing Regulatory Tensions with the US
The Commission’s actions are part of broader efforts to enforce the DMA and promote fair competition within the EU’s digital market. However, the crackdown has increased friction between the EU and the US government.
Trump and other US officials have signaled that targeting American tech firms could lead to countermeasures, including tariffs on European goods. Vice President JD Vance has also voiced opposition to strict EU tech regulations, particularly the Artificial Intelligence Act, which aims to impose transparency and accountability measures on AI-driven platforms.
The regulatory battles extend beyond the EU. The UK’s Online Safety Act has drawn criticism from US officials, though the British government insists it will not factor into trade negotiations with Washington. Meanwhile, the EU is investigating Meta, the parent company of Facebook and Instagram, over its “pay or consent” model, which charges users for an ad-free experience instead of relying on personal data for advertising revenue.
Implications for Tech and Trade
The outcome of the EU’s enforcement actions could reshape the digital economy and influence global trade policies. If the EU successfully imposes penalties on Google and Apple, it may encourage regulators in other regions to take similar actions. However, if the US retaliates with tariffs or other restrictions, it could trigger a broader trade conflict affecting multiple industries.
European officials maintain that the DMA is necessary to prevent monopolistic behavior and foster a fairer digital landscape. “We are simply enforcing existing laws to ensure fair competition,” said EU competition chief Teresa Ribera.
As regulatory scrutiny intensifies, tech giants face increasing pressure to adapt to new compliance requirements. Whether these measures will lead to a fairer digital market or escalate geopolitical tensions remains to be seen.