The European Commission has officially charged Google and Apple with violating the Digital Markets Act (DMA), a move that could heighten trade tensions between the European Union and the United States. U.S. President Donald Trump has already warned that stricter EU regulations targeting American tech giants could lead to retaliatory tariffs on European exports.
EU’s Allegations Against Google and Apple
On Wednesday, the European Commission began enforcement proceedings against Alphabet, Google’s parent company, and Apple. The DMA allows for fines of up to 10% of a company’s global revenue for violations, increasing to 20% for repeated offenses. Given Apple’s 2024 revenue of $391 billion, a maximum fine could surpass $80 billion.
The EU’s preliminary findings accuse Google of favoring its own services in search results, violating rules meant to ensure fair treatment for competitors. The Commission also claims that Google Play prevents app developers from directing users to alternative platforms, limiting consumer access to better deals.
Meanwhile, Apple is being ordered to open its operating systems to rival devices, including smartphones and wireless accessories, to promote competition. The EU has also outlined specific steps Apple must follow when responding to developer requests for broader system access.
Tech Giants Respond to Allegations
Apple has criticized the EU’s decision, stating that the ruling stifles innovation and forces the company to provide new features for free to competitors who do not face the same restrictions. Google’s Senior Competition Director, Oliver Bethell, argued that the regulatory changes could reduce the efficiency of search results and limit investment in Android and Play services.
Broader Trade and Policy Implications
EU competition chief Teresa Ribera defended the decision, asserting that the Commission is simply enforcing regulations to ensure fair competition. However, President Trump suggested that these crackdowns on U.S. tech companies might affect his administration’s trade policy, potentially resulting in tariffs on European goods.
In addition to these cases, the EU is investigating Meta, the parent company of Facebook and Instagram, over its “pay or consent” model. This model offers users an ad-free experience for a monthly fee instead of relying on personal data for advertising.
Tech regulations continue to cause international tension. The United States has opposed the UK’s digital services tax, and U.S. Vice President JD Vance has criticized Europe’s AI regulations, especially the EU’s Artificial Intelligence Act. Furthermore, the UK’s Online Safety Act has drawn criticism from U.S. officials, although the British government insists that the law will not be part of trade discussions with the Trump administration.