Thursday, May 8, 2025

EU Takes Aim at Big Tech Again — Google and Apple Ordered to Comply

On Wednesday, the European Commission took action against major U.S. technology companies.

The EU ruled that Google had violated the Digital Markets Act (DMA), Europe’s digital competition law, and issued a compliance order to Apple to adhere to the DMA.

During his first term, Donald Trump viewed Europe’s pressure on U.S. tech firms as challenging and responded with tariffs, yet the EU has resumed its regulatory crackdown on Big Tech.

The European Commission announced that Alphabet, Google’s parent company, had violated the EU’s DMA, a law aimed at curbing the influence of U.S. Big Tech in the European digital marketplace.

The Commission stated that Alphabet had breached this law through its Google Search and Google Play services.

The EU criticized Google Search for favoring its services over competitors’ offerings, a practice known as self-preferencing, which is explicitly prohibited under the DMA.

Furthermore, the EU determined that Google Play, the company’s mobile application store, had infringed upon app developers’ rights by not allowing users to make payments through alternative channels.

In response to the EU’s sanctions, Google argued that European consumers and businesses would ultimately bear the costs, claiming it had already adjusted its practices to comply with the DMA.

Separately, the EU also pressured Apple to comply with the DMA.

The Commission issued a corrective order for Apple to overhaul its practices in line with the DMA.

The directive, often called an order to open up the iPhone ecosystem, requires Apple to ensure compatibility across all devices.

With Europe’s regulatory pressure mounting, Trump is expected to retaliate with tariffs.

In February, Trump declared a tariff war against Europe, arguing that U.S. tech firms were subjected to “overseas extortion” through digital service taxes, fines, and other European policies. He threatened to respond with tariffs.

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