The European Commission has issued rulings against Apple and Google, indicating that the two U.S. tech giants may be violating the EU’s Digital Markets Act (DMA). This move indirectly challenges U.S. President Donald Trump, who has attempted to incorporate tech regulation into the escalating trade dispute between Washington and the EU.
Apple and Google might need to significantly alter some of their core products to avoid infringement decisions or fines that could reach up to 10 percent of their global revenues, according to the Commission. Despite the potential for transatlantic tensions, Commission Executive Vice President Teresa Ribera emphasized that these rulings are simply about enforcing the law.
“With these decisions, we are simply implementing the law,” Ribera stated. Unlike previous non-compliance findings under the DMA, the EU executive did not hold a press conference to announce these rulings.
In recent weeks, EU officials have toned down their rhetoric on digital enforcement, appealing to the shared interest between the EU and the U.S. in maintaining competition rules. The Apple decision mirrors a lawsuit pursued by the U.S. Department of Justice against the company.
Joseph Van Coniglio, a competition policy expert at the Information Technology and Innovation Foundation, noted that while there are debates within the U.S. government regarding antitrust policy application to Big Tech, a more mercantilist view on trade policy is likely to dominate concerning the DMA.
He referenced a February memo signed by Trump pledging to protect American companies from “overseas extortion,” mentioning the DMA and other digital policies.
“I think the consensus is that the U.S. is going to be opposed [to the Commission’s decisions],” Van Coniglio said.
The Commission’s rulings demand that Apple grant competitors equal access to iPhone functionalities, such as notifications and device-pairing, as it provides to its own devices like the Apple Watch. Additionally, Apple must revamp how it communicates with developers.
Google, on the other hand, needs to make further adjustments to its Play Store and Google Search service to stop favoring its own services over competitors.
— news from POLITICO Europe