The EU is moving forward with competition-based regulatory actions against Google and Apple. The European Commission (EC) announced two preliminary charges against Google for failing to comply with Digital Markets Act (DMA) regulations related to Google Search and the Play Store, which could lead to fines of $35 billion. The regulatory body also ordered Apple to make iOS more open to third-party devices like smartwatches, headphones and TVs. The decisions come in the face of US President Donald Trump threatening additional tariffs on nations that regulate US Big Tech companies.
As part of an investigation that began last March, the EC charged Google on Tuesday with violating the DMA by favoring its own services (such as shopping, hotel booking, transportation and financial and sports results) in search results over third-party competitors. The regulators said the company gives its services "more prominent treatment compared to others" by displaying them with enhanced visual formats and filtering mechanisms.
The EC also charged the company with preventing Google Play app developers from informing customers of alternative channels for cheaper offers. Although the commission said Alphabet has a right to charge a developer fee for steering a customer to another channel, it claimed that what the company demands in return goes beyond what is justified — "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 when it comes to 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, which was passed in 2022, allows European regulators to fine companies up to 10 percent of their global revenue. The commission can double the penalty to 20 percent for repeat offenders. Alphabet brought in over $350 billion last year.
The commission stresses that the charges aren't final, and Alphabet can still defend its decisions in writing before they are finalized.
The EU's moves follow through on a recent promise to enforce its regulatory laws despite tariff threats from Trump as part of his escalating trade war with other nations. He wrote a memo in late February, saying he would consider tariffs in response to "digital services taxes, fines, practices and policies" on American companies. In turn, the EC said it would "respond swiftly and decisively to defend its rights and regulatory autonomy against unjustified measures."
Although the EC's decision for Apple doesn't (yet) involve charges, it offered measures the company must comply with to avoid them in the future. First, the company must provide greater compatibility with third-party devices that connect to iPhones. Unless Apple wants to face fines of over $39 billion, it will have to improve areas like notifications for third-party smartwatches, data transfer speeds (like peer-to-peer Wi-Fi and NFC) and the pairing process on connected accessories from competing companies.
The EC also ordered Apple to improve access to technical documentation for developers to 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 a better choice 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
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