EU Cracks Down Hard: Google and Apple Face Regulatory Backlash in Europe
Brussels Takes Action Against Google; Exerts Pressure on Apple, Undeterred by Trump's Warnings - Intensifying Strain on Google and Apple: Brussels Persists, Disregarding Trump's Warnings
The European Commission is taking firm action against tech giants Google and Apple, citing anti-competitive practices.
In a statement, the Commission observed that Alphabet (Google's parent company) favors its own services on Google search results by displaying them at the top. Additionally, the company employs special display areas, filters, and highlighting effects for its own offerings, whereas competitors' links appear later.
This practice earned Google a €2.4 billion fine in 2017, subsequently upheld by the European Court of Justice. Despite recent changes to Google's search engine, the Commission asserts that these modifications fell short of expectations, necessitating further adjustments.
Google maintained its stance, stating that it would comply with the regulations but criticized the decision, arguing that it would adversely affect European consumers by making it more challenging for people to find what they're looking for.
Similarly, Apple's business practices on the Google Play app store were found to breach EU competition rules. The Commission expressed concerns about the high fees charged to developers for an unreasonably prolonged period and the distribution of apps.
Turning the heat up on Apple, the Commission demanded increased compatibility between Apple devices and products from other manufacturers. Compared to the case with Google, this isn't a formal investigation against the company, though there's an ongoing procedure against Apple in Brussels regarding its app store.
Apple disapproved of the Commission's directive, claiming that it would be forced to share its technology with competitors for compatibility purposes, a move it argues would negatively impact their products and European users.
Google and Apple must abide by the Digital Markets Act (DMA). The aim of the EU is to curb the market influence of so-called gatekeepers in the digital world, including Amazon, Booking.com, Bytedance, Meta, and Microsoft. Failure to comply could result in fines totaling up to 10% of their global annual turnover.
The EU's regulatory steps against large digital companies have been a source of contention for US President Trump. His administration has threatened tariffs if Brussels acts against US companies, describing the legally prescribed fines as "unfair."
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Insights:- The changes being demanded of Google and Apple under the Digital Markets Act (DMA) aim to promote competition. However, both companies believe the changes may impact product quality and innovation negatively.- European businesses might experience a decline in traffic of up to 30% due to changes in Google's search result display[1].- EU regulations could expose users to more malware and fraud as they may be compelled to choose between openness and security[1].
- References:[1] [cite] The new changes in Google's search results may harm European businesses (Reuters, September 30, 2021)
[2] [cite] Apple's compliance with the Digital Markets Act (EU Commission, November 24, 2022)
- The EU Commission's demand for Apple to increase compatibility between its devices and those of other manufacturers is part of the ongoing regulatory pressure on tech giants like Apple and Google.
- Despite the tariff threat from US President Donald Trump, the EU Commission continues to crack down on alleged anti-competitive practices by tech giants, such as Google and Apple, as per the Digital Markets Act (DMA).
- Brussels' regulatory actions against large digital companies, including Apple and Google, have been met with criticism from the tech companies themselves, who argue that the proposed changes could negatively impact product quality and innovation.
