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EU accuses Apple, Google of unfairly blocking out smaller competitors amid tension over Trump moves

EU accuses Apple, Google of unfairly blocking out smaller competitors amid tension over Trump moves

  • 20.03.2025 10:34
  • firstpost.com
  • Keywords: Regulatory Crackdown, Competition Issues

The EU has accused Apple and Google of unfairly blocking smaller competitors under the Digital Markets Act. The companies face potential penalties if they don't comply with new competition rules, escalating tensions between Brussels and Washington.

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Estimated market influence

Apple

Apple

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Analyst rating: Buy

The EU has accused Apple of unfairly blocking smaller competitors, requiring changes to its business model and facing potential fines.

Google

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Analyst rating: N/A

The EU has accused Google of unfairly prioritizing its own products over rivals, requiring changes to its Play Store and search services and facing potential fines.

Context

Analysis of EU Ruling Against Apple and Google

Key Facts and Data

  • The European Commission has accused Apple and Google of violating the Digital Markets Act (DMA).
  • Both companies could face fines of up to 10% of global revenue for non-compliance.
  • The DMA requires "gatekeeper" tech firms to ensure fair competition by opening up their platforms.

Apple's Obligations

  • Must grant equal access to iPhone functionalities like notifications and device-pairing to rival developers.
  • Currently, Apple restricts these features to its own products (e.g., Apple Watch).
  • Regulators argue this limits app freedom and interoperability for competitors.

Google's Obligations

  • Must revise its Play Store policies to avoid prioritizing its own services over rivals.
  • Changes made so far are deemed insufficient by EU regulators.

Competitive Dynamics

  • The ruling could disrupt Apple’s tightly controlled ecosystem, potentially benefiting smaller developers.
  • Google faces pressure to level the playing field in its search and app distribution businesses.

Market Implications

  • This marks a significant escalation in the EU’s regulatory crackdown on Big Tech.
  • Similar rulings are expected later in March 2025, targeting other tech giants.
  • The DMA sets a precedent for global regulation of dominant digital platforms.

Regulatory and Long-Term Impact

  • The ruling reflects the EU’s growing assertiveness in curbing Silicon Valley dominance.
  • Non-compliance could lead to severe penalties, forcing major tech firms to adapt their business models.
  • This could influence global regulatory frameworks for tech competition.

Reactions and Context

  • Critics argue the measures do not go far enough in ensuring fair competition (e.g., Dirk Auer of the International Center for Law & Economics).
  • Google claims it has engaged in “good-faith” discussions but faces criticism from industry groups like EU Travel Tech.

Conclusion

The EU’s actions against Apple and Google signal a broader shift toward stricter regulation of dominant tech platforms. The rulings could reshape competition dynamics in Europe’s digital market and set a precedent for global tech governance.