The EU is advancing with competition-based regulatory measures against Google and Apple. The European Commission (EC) announced two preliminary charges against Google for not adhering to Digital Markets Act (DMA) guidelines related to Google Search and the Play Store, which might result in fines up to $35 billion. The regulatory authority also ordered Apple to open up iOS to third-party devices, including smartwatches, headphones, and TVs. These decisions come as a response to US President Donald Trump threatening additional tariffs on countries regulating US Big Tech companies.
As part of an investigation initiated last March, the EC charged Google on Tuesday with infringing the DMA by favoring its own services (e.g., shopping, hotel booking, transportation, and financial and sports results) in search outcomes over third-party competitors. Regulators stated the company offers its services “more prominent treatment compared to others” through enhanced visual layouts and filtering mechanisms.
The EC also charged the company with preventing Google Play app developers from notifying customers about alternative avenues for cheaper offers. Though the commission acknowledged Alphabet’s right to a developer fee for directing a customer to a different channel, it argued that the company demands in return exceed justification — “a high fee over an unduly long period of time for every purchase of digital goods and services.”
“The two preliminary findings we adopt today aim to ensure that Alphabet abides by EU rules regarding two services widely used by businesses and consumers across the EU, Google Search and Android phones,” EU antitrust chief Teresa Ribera said in a statement.
The DMA, enacted in 2022, permits European regulators to fine companies up to 10 percent of their global earnings. The commission can increase the penalty to 20 percent for recurring offenders. Alphabet reported revenues of over $350 billion last year.
The commission emphasizes that these charges aren’t final, and Alphabet still has the opportunity to justify its actions in writing before the finalization.
The EU’s actions fulfill a recent pledge to enforce its regulatory laws despite tariff threats from Trump as part of his escalating trade conflict with other nations. He wrote a memo in late February, suggesting he would contemplate additional tariffs in reaction to “digital services taxes, fines, practices, and policies” on American firms. In response, the EC indicated it would “respond swiftly and decisively to defend its rights and regulatory autonomy against unjustified measures.”
While the EC’s decision on Apple currently does not involve charges, it provided measures that the company must follow to avoid them in the future. Firstly, Apple must enhance compatibility with third-party devices that connect to iPhones. To avoid fines of over $39 billion, Apple will need to improve areas like notifications for third-party smartwatches, data transfer speeds (such as peer-to-peer Wi-Fi and NFC), and the pairing process on connected accessories from competing firms.
The EC also instructed Apple to enhance access to technical documentation for developers so they can make their products interact with iPhones and iPads.
“Effective interoperability for third-party connected devices is an important step towards opening Apple’s ecosystem,” Ribera said in a statement. “This will lead to better choices for consumers in the fast-growing market for innovative connected devices.”
This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-eus-new-charges-against-google-could-lead-to-at-least-35-billion-in-fines-165850585.html?src=rss
