The European Union has intensified its regulatory crackdown on Big Tech, charging Google with breaching competition laws and ordering Apple to open its ecosystem to rivals. The European Commission’s actions, announced on Wednesday, come despite warnings from U.S. President Donald Trump about possible trade retaliation against countries penalising American firms.
Google faces two charges under the Digital Markets Act (DMA), which aims to curb the power of dominant tech companies. The EU’s preliminary findings accuse Google of restricting app developers from directing users to better deals outside its Play Store and prioritising its own services, such as Google Flights and Google Shopping, in search results.
Apple, meanwhile, has been ordered to allow competing smartphone, headphone, and virtual reality headset makers to integrate seamlessly with iPhones and iPads. It must also provide developers with a clear process to make their apps interoperable with Apple’s systems.
Google denied wrongdoing, arguing that the EU’s approach would make search results less useful and harm European businesses. Apple criticised the decision, saying it would slow innovation and unfairly benefit competitors who don’t follow the same rules.
Both companies face severe penalties if they fail to comply. Google, which has already been fined over €8 billion by the EU in recent years, could face fines of up to 10% of its global revenue. Apple may also face further investigations and potential penalties if it does not meet the Commission’s demands.