Google, Apple face further EU crackdown on Big Tech

Commission risks wrath of Trump with new push to open up platforms

EU antitrust chief Teresa Ribera said the EU watchdog will follow through with cases under the DMA. Photograph: Oscar del Pozo/AFP via Getty Images)
EU antitrust chief Teresa Ribera said the EU watchdog will follow through with cases under the DMA. Photograph: Oscar del Pozo/AFP via Getty Images)

The European Commission has told Google and Apple to comply with new rules in the region aimed at curbing Big Tech’s power in a move that could further stoke tensions with US President Donald Trump.

Google was hit with two charges of allegedly breaching the Digital Markets Act, which came into force last year, by favouring its own services in Google Search, such as Google Flights or Google Shopping, and whether it stops app developers from directing users to offers outside its Google Play app store.

“Our main focus is creating a culture of compliance,” Teresa Ribera, the European Union’s (EU) antitrust chief said in a statement

Apple, meanwhile, was told it must give rivals access to its technology to allow them to connect with its mobile devices and tablets.

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Ms Ribera said the measure targeting Apple is an “important step” toward opening its ecosystem.

However, Apple pushed back against the move, warning it would have a negative impact on its customers.

“Today’s decisions wrap us in red tape, slowing down Apple’s ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don’t have to play by the same rules,” it said in a statement. “It’s bad for our products and for our European users.”

The company said it would continue to work with the commission to relay its concerns. However, it remains unconvinced that the current requests will foster innovation and competition, as intended, and could make it more difficult to launch new products and technology in the region.

The company has also previously warned that opening up its iPhone and iPad operating systems could pose a risk to privacy and security of users.

Apple is not the only company that has faced EU scrutiny in recent years. Google last year, lost a court bid to overturn a €2.4 billion fine for abusing its monopoly power to crush rival search shopping services.

Meta is also poised to receive a decision over its subscription model for ad-free access to Facebook and Instagram.

Any future EU penalties – be they aimed at Apple or Google – could be badly received by Mr Trump, who has criticised the EU’s antitrust fines, saying they are tantamount to tariffs against the US.

But EU regulators are unlikely to be veered drastically off course by threats from the Trump administration, with Ms Ribera saying the watchdog will follow through on cases under the DMA. – Additional reporting: Reuters, Bloomberg

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist