Google and Apple may be facing more scrutiny from European Union regulators amidst the rising threat of tariffs from President Donald Trump.
The European Commission, which is the executive body of the EU, said Wednesday that it found Google’s parent company Alphabet in breach of the Digital Markets Act (DMA) — a landmark law aimed at tackling tech competition issues — with its Search and Google Play products.
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The bloc accused Google Search of treating Alphabet’s own services more favorably compared to rival ones — a practice known as “self-preferencing,” which is not permitted under the DMA.
Google is charged with allegedly favoring its own services, like Google Flights, in search results and imposing restrictive practices on its Play Store, limiting competition. Apple, on the other hand, is under pressure to make iOS — Apple’s proprietary operating system — more compatible with other platforms, addressing concerns about its control over the App Store and its ecosystem.
Both companies have criticized the EU’s actions, arguing that the regulations could stifle innovation and negatively impact user experience. These regulatory challenges are part of the EU’s broader effort to ensure fair competition in the digital marketplace. Meanwhile, tensions are rising between the EU and the U.S., with the latter accusing the EU of unfairly targeting American tech giants, potentially leading to retaliatory measures.
“The Commission’s findings require us to make even more changes to how we show certain types of Search results, which would make it harder for people to find what they are looking for and reduce traffic to European businesses. This is, quite simply, misguided,” Oliver Bethell, Google’s EMEA director for competition, said in a blog post.
What is antitrust?
Antitrust refers to laws and regulations designed to promote fair competition in the market and prevent monopolistic practices that could harm consumers or other businesses. These laws aim to prevent companies from unfairly dominating a market, creating monopolies, or engaging in anti-competitive behaviour, such as price-fixing or limiting access to products or services. The goal is to encourage competition, innovation, and consumer choice.
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What does the Digital Markets Act do?
DMA (Digital Markets Act) is a set of regulations implemented by the European Union to address anti-competitive behavior specifically in the digital sector. It targets large tech companies, often referred to as “gatekeepers,” that have significant influence over digital markets.
The DMA aims to ensure these companies do not abuse their power by imposing unfair terms on smaller competitors, restricting access to services, or manipulating digital markets. It includes rules about transparency, interoperability, and data use, aiming to create a level playing field in the digital economy.