EU Charges US Tech Giants with Violating Digital Regulations
Google and Apple could face fines for reportedly breaching the EU's Digital Markets Act, intensifying tensions across the Atlantic.
The European Commission has charged Google and Apple with violating the EU's Digital Markets Act (DMA), a development that could lead to substantial fines for the American tech giants.
The commission has preliminarily concluded that Google's search engine favors results that direct users to its own services, undermining the requirement to handle third-party services in a fair, transparent, and non-discriminatory manner.
Furthermore, Google Play is accused of hindering developers from directing consumers to alternative channels that may offer better deals.
Apple has been instructed to ensure its operating systems are accessible to devices from competing manufacturers or risk investigations and penalties.
The EU has also provided a specific timeline and framework for Apple to address requests from app developers regarding system accessibility.
Violations of the DMA may result in fines of 10% of global revenue, or 20% for repeated offenses.
For Apple’s 2024 revenue, the potential maximum fine could approach $80 billion.
Additionally, the EU is scrutinizing Meta, the parent company of Facebook and Instagram, regarding its pay or consent model.
The United States has responded negatively to the EU's regulatory measures, with President Donald Trump suggesting that he may consider such regulatory actions against American companies when deciding on tariffs for foreign products.