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Google, Apple hit by EU regulatory crackdown

Google, Apple hit by EU regulatory crackdown

  • 19.03.2025 11:04
  • bdnews24.com
  • Keywords: Regulatory Crackdown, Antitrust Issues

Google and Apple are facing EU antitrust actions. Google is charged with violating Digital Markets Act rules by restricting app developers and favoring its services, while Apple must allow rivals to connect with iPhones and iPads. Both companies may face fines if non-compliant.

Apple ServicesAAPLsentiment_dissatisfied

Estimated market influence

Google

Negativesentiment_dissatisfied
Analyst rating: N/A

Charged with violating EU Digital Markets Act, risking fines up to 10% of global sales.

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Ordered to allow rivals to connect with iPhones and iPads, facing potential investigation and fines.

Context

Business Insights and Market Implications

Google

  • DMA Violations:

    • Restricts app developers from directing users to external offers outside Google Play.
    • Imposes excessive service fees for app developer acquisition via Google Play.
    • Favours its own services (e.g., Google Search, Flights) over competitors in search results.

  • Potential Fines: Up to 10% of global annual sales if found guilty under DMA.

  • Impact on Business Model: Changes to search result展示 could reduce traffic for European businesses and strain Android/Play service investments.

  • Regulatory Trend: Reflects broader EU focus on curbing Big Tech dominance.

Apple

  • Ecosystem Access:

    • Ordered to grant rivals access to iPhone/iPad technology and operating systems.
    • Must ensure app developer system interoperability within a defined timeline.

  • Potential Fines: Investigation and potential fines for non-compliance with EU orders.

  • Strategic Concerns: Risks slowing innovation and giving competitors free access to new features.

  • Market Dynamics: Could foster competition but may also fragment Apple's ecosystem.

Market and Industry Implications

  • Increased Competition: Rivals may gain better access to ecosystems, challenging market leaders.
  • Regulatory Scrutiny: Sets precedent for stricter oversight of tech giants in Europe and globally.
  • Investment Risks: Potential fines could strain financials and impact shareholder value.
  • Innovation Impact: Regulatory focus may divert resources from innovation to compliance.

Competitive Landscape

  • Fragmentation Risk: Forced interoperability could lead to more fragmented ecosystems.
  • Shift in Market Power: May reduce dominance of Google Search and Apple's walled gardens.
  • Long-term Effects: Could reshape industry dynamics, fostering new entrants and changing consumer choices.