Unlock Editor’s Digest Lock for Free
FT editor Roula Khalaf will select your favorite stories in this weekly newsletter.
Brussels is pushing regulatory measures against Apple and Google under landmark laws designed to expose the group to new competition despite tensions with President Donald Trump over stricter EU regulations for the US large tech company.
The European Commission, the executive arm of BLOC, filed accusing Google’s parent company Alphabet on Wednesday of the digital market disruption law.
In a preliminary finding, regulators said they are concerned that despite a series of changes to Google’s search, Google’s search engines prefer their own services over their rivals, and whether developers are curbing competition by making it difficult for consumers to “steer” what they offer outside the App Store.
Companies found in a DMA violation faced fines of up to 10% of global revenue, doubled to 20% for repeated offenders.
Google said the committee’s decision “will hurt European businesses and consumers, hinder innovation, weaken security and reduce product quality.” The changes needed to Google searches will make it difficult to find what people are looking for and reduce traffic to European businesses.
The committee on Wednesday also ordered Apple to open more operating systems on connected devices such as other branded smartwatches and headphones. This decision will allow further opening up the iOS operating system of European iPhone manufacturers.
Apple’s decision cannot be immediately fined, but if the company refuses to comply, the committee can take further action under the DMA, which could ultimately lead to financial penalties.
Apple “wraps us in red tape, slows down Apple’s ability to innovate European users, and forces them to offer new features to companies that don’t need to play with the same rules. That’s bad for our products and European users.”
“Companies operating in the EU must comply with EU regulations, including the Digital Markets Act, regardless of where they are established,” said EU competition chief Teresalivera, “Through these decisions, we are simply implementing the law.”
Recommended
The decision is the first indication that a new committee, which began its current mission in December, will continue to implement the DMA. That push comes despite the risk of potential retaliation through Trump’s control, which directly attacks US companies with EU fines and calls it a “form of taxation.”
Starting next week, BLOC will make more sensitive decisions on how Big Tech handles due to legal deadlines that close out some investigations with Apple, Meta and Google.
These probes could result in immediate fines and endanger the escalation of transatlantic tensions during the escalation of trade wars.
The US President is considering tariffs in countries that collect digital services taxes on American companies. According to a memo released last month, Trump said he would investigate taxes and regulations or policies that “stifle growth” for US companies operating overseas.
However, the committee is also under pressure from other businesses, civil society and the European Parliament to stick with its own digital rules book, which only came into effect in 2022.
