EU pursues action against Google and Apple under regulations

Brussels is moving forward with regulatory action against Google and Apple. This is part of the European Union's efforts under the Digital Markets Act. The EU wants to encourage more competition in the tech sector, despite tensions with former U.S. President Donald Trump over these regulations. On Wednesday, the European Commission announced that it is charging Google’s parent company Alphabet with violations of the new law. Regulators are concerned that Google favors its own services in its search engine. They also worry that Google makes it hard for developers to guide users to alternatives outside its app store. If found guilty, companies could face fines up to 10% of their global revenue. For repeat violations, fines can double to 20%. In a response, Google claimed these actions would harm European businesses and reduce innovation. The commission also instructed Apple to make its operating systems more compatible with devices from other brands. This could force Apple to further open its iOS system in Europe, despite previous concessions. If Apple fails to comply, it could face financial penalties later on. Apple criticized the EU’s actions, saying they limit its ability to innovate and could give free access to its features to competitors that don’t follow the same rules. The EU’s competition chief, Teresa Ribera, emphasized that all companies in the EU must follow these regulations. This is the first indication that the new European Commission is serious about enforcing the Digital Markets Act. The administration of Trump has previously condemned such fines as a form of taxation. Next week, the EU is expected to make important decisions regarding investigations into Apple, Meta, and Google. These could result in immediate fines and potentially escalate trade tensions with the U.S. Trump has hinted at tariffs against countries that impose digital service taxes on American companies. Meanwhile, there is pressure on the EU from other companies and lawmakers to enforce its digital regulations, which only took effect in 2022.