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EU risks Trump backlash as it warns Apple, Google of big fines

EU risks Trump backlash as it warns Apple, Google of big fines

  • 20.03.2025 06:45
  • techcentral.co.za
  • Keywords: EU Risks Trump Backlash, Google Warned, Apple Scrutiny, Potential Fines, EU Antitrust Rules

The EU has warned Apple and Google about potential hefty fines under new antitrust rules, which could strain relations with the US after President Trump vowed to retaliate against similar EU measures.

Meta ProductsAAPLsentiment_dissatisfied

Estimated market influence

Google

Negativesentiment_dissatisfied
Analyst rating: N/A

Google was warned for breaching EU's Digital Markets Act and could face hefty fines.

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Apple must comply with EU antitrust laws, which could lead to loosening of its ecosystem control.

Context

Analysis: EU Risks Trump Backlash as It Warns Apple, Google of Big Fines

Key Facts and Data Points

  • Google warned to comply with EU’s Digital Markets Act (DMA) or face hefty fines.
  • Allegedly breached DMA by favoring in-house services across its search empire and restricting app developers from steering users to external offers.
  • Apple instructed to loosen restrictions on its iPhone operating system to comply with DMA, which aims to strengthen EU antitrust defenses against Silicon Valley.
  • Teresa Ribera, EU’s antitrust chief, emphasized the need for compliance with DMA.
  • Google faces potential fines of up to 10% of global annual revenue for non-compliance.
  • Apple previously warned about EU attempts to open its iOS ecosystem, accusing Meta Platforms of seeking access to sensitive features.
  • Trump has repeatedly criticized EU antitrust fines, calling them tariffs against the US.
  • EU regulators are unlikely to alter course despite Trump’s threats; Ribera stated the watchdog will enforce DMA cases.

Market Trends and Business Impact

  • Escalating tensions: EU’s actions against Google and Apple risk inflaming US-EU relations, particularly under Trump’s administration.
  • Regulatory focus: EU is doubling down on antitrust enforcement against Big Tech, signaling a tougher stance on market dominance.
  • Financial risks: Potential fines could significantly impact tech giants’ revenue streams, with penalties reaching up to 10% of global annual turnover.
  • Developer ecosystem: Restrictions on app developers could harm innovation and competition in digital markets.

Competitive Dynamics and Strategic Considerations

  • Google’s vulnerability: Facing growing EU scrutiny over its search business, which previously led to a €2.4 billion fine for abusing monopolies.
  • Apple’s pushback: Warned that new regulations will increase regulatory burden, potentially harming product quality and user experience.
  • Meta’s pending decision: Likely to face penalties for its subscription model, adding to the competitive landscape in digital advertising and services.

Long-term Effects and Regulatory Implications

  • Setting precedents: EU’s actions could establish a framework for regulating tech platforms globally, influencing other regions like the US and Asia.
  • US-EU trade tensions: Trump’s potential backlash could escalate into broader trade disputes, affecting transatlantic relations.
  • Global antitrust wave: The DMA and similar regulations may inspire other jurisdictions to adopt stricter measures against dominant tech firms.

Conclusion

The EU’s warnings to Google and Apple mark a significant escalation in its antitrust efforts against Silicon Valley. While the immediate impact is on these companies, the broader implications include heightened US-EU tensions, potential trade reprisals, and a shift in global regulatory frameworks for Big Tech.