Google, Apple face further EU crackdown on Big Tech

Google, Apple face further EU crackdown on Big Tech

  • 20.03.2025 17:06
  • irishtimes.com
  • Keywords: Big Tech, EU Antitrust, Digital Markets Act

The European Commission is targeting Google and Apple with new antitrust rules aimed at curbing Big Tech dominance. Google faces charges for favoring its services in search results, while Apple must allow rivals to connect with its devices. Both companies argue the measures will harm innovation and competition, potentially escalating tensions with US President Trump over EU tech regulations.

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Estimated market influence

Google

Negativesentiment_dissatisfied
Analyst rating: N/A

Allegedly breaching the Digital Markets Act by favoring its own services and restricting app developers.

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Ordered to allow rivals access to its technology, which Apple claims will harm innovation and competition.

Context

Analysis of EU Antitrust Actions Against Google and Apple

Key Facts and Data Points:

  • Google:

    • Charged under the Digital Markets Act (DMA) for allegedly favoring its own services (e.g., Google Search, Google Flights, Google Shopping).
    • Accused of restricting app developers from directing users to external platforms like Google Play.
  • Apple:

    • Required to grant rivals access to its technology to connect with Apple’s mobile devices and tablets.
    • Warned that compliance could hinder innovation and competition, potentially making it harder to launch new products in Europe.
  • Historical Context:

    • Google previously lost a court case over a €2.4 billion fine for abusing its monopoly in search shopping services.
    • Meta is awaiting a decision on its subscription model for ad-free access to Facebook and Instagram.

Market Trends and Business Impact:

  • The EU’s enforcement of the DMA signals a broader push to regulate Big Tech and promote competition.
  • Compliance with these rules could force tech giants to alter their business practices, potentially reducing monopolistic behaviors.
  • Increased regulatory scrutiny: Companies like Google and Apple face ongoing risks of fines and forced changes to their operations.

Competitive Dynamics:

  • Potential for new competitors: Opening up ecosystems (e.g., Apple’s) could allow smaller companies to innovate and compete more effectively.
  • Strategic concerns: Tech giants may view these measures as threats to their business models, potentially leading to pushback or litigation.

Long-Term Effects and Regulatory Implications:

  • Shifts in market dynamics: Compliance with DMA could lead to a more level playing field for competitors, altering market share distributions.
  • Global implications: While the EU focuses on its internal regulations, companies like Google and Apple will need to adapt their strategies across regions.

Strategic Considerations:

  • Innovation vs. regulation: Companies must balance compliance with maintaining innovation to stay competitive.
  • Reputational risks: Public perception of fairness and competition could impact brand loyalty and customer trust.

Conclusion:

The EU’s actions under the DMA represent a significant shift in how tech giants operate within the region. While these measures aim to promote competition and consumer choice, they also pose challenges for innovation and business sustainability. The long-term effects will depend on how companies adapt to these new regulations and whether they can maintain their competitive edge while complying with stricter antitrust rules.