The European Union regulators have announced antitrust investigations targeting tech giants Google and Apple. This move coincides with U.S. President Trump's threats to impose tariffs on the EU, accusing it of "overseas extortion" against American tech companies.
The European Commission, the EU's executive arm, has identified violations of the Digital Markets Act (DMA) by Google's parent company, Alphabet (GOOGL, Financial). The DMA is a landmark law aimed at addressing issues of competition in the tech sector. The EU accuses Google Search of favoring Alphabet's own services over competitors, a practice known as "self-preferencing," which is prohibited under the DMA. Additionally, the EU claims that Alphabet's Google Play store restricts app developers from directing consumers to alternative options freely.
In response, Google (GOOGL, Financial) stated that these actions could harm consumers and businesses. The company cited examples where compliance with the DMA led to changes in search results that diverted traffic to intermediary platforms, increasing costs for consumers. Oliver Bethell, Google's director of competition for Europe, the Middle East, and Africa, argued that the Commission's demands would make it harder for people to find what they want and reduce traffic for European businesses.
Moreover, the EU Commission has issued directives to Apple, requiring the iPhone maker to comply with interoperability obligations under EU competition rules. Interoperability refers to the practice of enabling easier communication between different platforms, allowing users to transfer data smoothly from one system to another. The EU insists that Apple should implement interoperability in its iOS mobile operating system, allowing third parties to develop innovative products and services on Apple's platform.
Apple responded by stating that these measures impose constraints, slowing down its ability to innovate for European users and forcing it to offer new features for free to companies not bound by the same rules. An Apple spokesperson affirmed their commitment to working with the EU Commission to address these concerns on behalf of users.
