Google and Apple may encounter possible fines for purportedly breaching the EU's Digital Markets Act, intensifying tensions across the Atlantic.
The European Commission has accused Google and Apple of violating the EU's Digital Markets Act (DMA), a situation that could lead to hefty fines for the American tech firms.
The commission has preliminarily concluded that Google's search engine favors results linking to its own services over those of competitors, thus violating the requirement to handle third-party services in a transparent, fair, and non-discriminatory manner.
Furthermore, Google Play is alleged to be restricting developers from directing consumers to alternative channels where potentially better deals might be found.
Apple has been instructed to make its operating systems accessible to devices from rival manufacturers or face investigations and penalties.
The EU has also provided a comprehensive timeline and framework for Apple to address requests from app developers regarding the opening of its systems.
Violations of the DMA could lead to fines equal to 10% of a company's global revenue, or 20% for repeat offenses.
Given Apple's projected revenue for 2024, the highest possible fine could approach $80 billion.
Additionally, the EU is looking into Meta, the parent company of
Facebook and Instagram, concerning its pay or consent model.
The US has voiced opposition to the EU's regulatory measures, with President
Donald Trump suggesting that any regulatory actions against American companies will influence his decisions on imposing tariffs on foreign products.