Google, a subsidiary of Alphabet, faces a warning from the European Union to align with new regulations aimed at Big Tech or risk facing significant financial penalties. This development marks a significant escalation in the EU’s scrutiny of major technology companies and could heighten tensions with U.S. President Donald Trump.
The European Commission has publicly reprimanded Google for purported violations of the Digital Markets Act, accusing the company of promoting its own services within its extensive search platform and restricting app developers from directing consumers to alternative offerings outside of the Google Play Store.
In a related matter, Apple Inc. has been instructed to make its popular iPhone operating system more accessible, in line with the same law enacted last year to fortify the EU’s antitrust protections against the dominance of Silicon Valley. While failure to comply with Google’s directives could lead to financial repercussions, Apple’s situation, although critical, does not directly entail a similar threat.
Teresa Ribera, the EU’s antitrust chief, emphasized the importance of fostering a culture of adherence to the Digital Markets Act in a statement regarding Google’s case. She also referred to the measures against Apple as a crucial move towards enhancing openness within its ecosystem.
In the past few years, Google, headquartered in Mountain View, California, has endured increasing scrutiny from EU regulators concerning its search operations. Last year, the tech giant was unsuccessful in its attempt to overturn a record €2.4 billion ($2.6 billion) fine imposed for abusing its monopoly position to eliminate competition from rival shopping services.
Apple has expressed concerns that the EU’s push to open its iPhone and iPad operating systems poses risks to user privacy and security, claiming that rival Meta Platforms Inc. seeks access to sensitive features unlawfully.
“Today’s decisions entangle us in excessive regulation,” Apple remarked in a statement. “This is detrimental to both our products and European consumers.”
Addressing Apple’s privacy claims, Ribera responded at a Bloomberg event in Brussels, suggesting that the argument is more a representation of Apple’s business strategy rather than a genuine privacy concern.
Oliver Bethell, a senior director at Google, indicated that the findings could worsen user experiences in Europe going forward.
As EU regulators increase their focus on Apple regarding the compliance of its App Store with the Digital Markets Act, the iPhone maker may soon face a fine for allegedly hindering developers from offering more affordable subscription options outside its store. This comes after a previous fine of around €1.8 billion (approximately $1.9 billion). Meta, meanwhile, is also expecting a decision regarding its advertisement-free subscription model on Facebook and Instagram.
Future penalties imposed by the EU, aimed at either Apple or Google, could trigger discontent from Trump, who has criticized the bloc’s antitrust fines as de facto tariffs against the U.S. In a tit-for-tat over tariffs, he has already announced responses to the EU’s counteractions against new 25 percent tariffs on steel and aluminum, suggesting that further EU penalties might be interpreted by the White House as provocations.
Despite Trump’s warnings, EU regulators are likely to remain steadfast. Ribera has affirmed that the European Commission exercises broad authority in determining fine amounts and has reiterated its commitment to enforce compliance with the Digital Markets Act.
She reinforced this message recently, stating the EU cannot retreat into the background when important decisions are needed.
Violations of the regulations could incur fines of up to 10 percent of a company’s global annual revenue. However, penalties traditionally associated with competition rules typically do not reach such high levels.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
