The European Union has warned Google and Apple over digital rules, potentially fining them up to 10% of their revenue. This move escalates tensions with President Trump, who views the fines as extortion, while both companies argue compliance would harm innovation and users.
The EU issued warnings to Apple over potential violations of digital rules. Apple is required to give rival developers greater access to iOS to improve interoperability and comply with the law. Apple has argued that doing so would put user privacy at risk.
The EU issued warnings to Google over potential violations of digital rules. Google could face major fines for treating its own in-house services more favorably than rivals within its search results and for restricting rival developers from steering users away from its 'Play' Android app store.
The EU is enforcing the Digital Markets Act, which aims to regulate large platforms like Google, Apple, and Meta, and boost competition. The EU's actions are part of a broader trade dispute with President Trump over digital service taxes and fines on American companies.
President Trump has compared Europe’s Big Tech fines to extortion and threatened to impose major tariffs against EU members in response. He issued a memo last month outlining plans to consider responsive actions like tariffs to combat DSTs, fines, practices, and policies that foreign governments levy on American companies.