EU’s Antitrust War on Big Tech Heats Up as US Trade Disputes Grow

The European Commission has escalated its enforcement of digital antitrust regulations against Apple and Google, marking another chapter in the ongoing tensions between the EU and the United States over the treatment of American tech giants. According to The Wall Street Journal, the commission has raised concerns that Google’s search results and the terms imposed on app developers using the Google Play Store on Android devices may violate the Digital Markets Act (DMA) by giving the company an unfair advantage.

The DMA prohibits designated “gatekeepers” from prioritizing their own services over those of third-party competitors. Per The Wall Street Journal, regulators suspect that Google’s business practices could be in breach of these rules, leading to increased scrutiny over how the tech giant structures its search results and app store policies. Google, in a blog post, pushed back against the accusations, arguing that such competition rules are ultimately harmful to consumers and businesses alike.

Apple is also under pressure from the European Commission, which has outlined necessary changes to ensure greater interoperability between iOS devices and competing products. Per The Wall Street Journal, regulators have instructed Apple to improve the integration experience for third-party smartwatch and headphone manufacturers with its iPhone and iPad operating systems. Additionally, the commission wants Apple to facilitate easier pairing with virtual reality headsets and other accessories to comply with the DMA.

Related: Britain’s Antitrust Regulator Sets Clearer Path for Big Tech Oversight

A spokesperson for Apple criticized the decision, stating that these regulatory actions entangle the company in bureaucratic restrictions that hinder its ability to innovate. Apple contends that the rules force it to share its latest features for free with competitors who are not subject to the same level of regulatory scrutiny. However, the company affirmed its commitment to cooperating with the European Commission in addressing concerns raised by regulators.

Regulators launched specification procedures last September to instruct Apple on how to make its products more accessible to third-party developers. Under the DMA, Apple is legally obligated to implement these measures to ensure compliance. Meanwhile, the European Commission has spent much of the past year investigating Apple, Google, and Meta for potential violations of the digital competition rules, with final stages of probes into Apple and Meta expected to conclude next week.

The EU’s antitrust measures against Big Tech arrive against the backdrop of a growing trade dispute between the U.S. and the European bloc. The recent imposition of U.S. tariffs on steel and aluminum imports has prompted the EU to retaliate with tariffs on various American goods, including a proposed 50% levy on American whiskey. According to The Wall Street Journal, former U.S. President Donald Trump has threatened additional tariffs, including a 200% duty on European wine and spirits, further exacerbating trade frictions.

The U.S. administration has been vocal in its criticism of the EU’s regulatory stance, with previous White House statements characterizing the bloc’s multi-billion-euro fines against Alphabet, Apple, and Meta as a form of taxation on successful American firms. A memo issued last month signaled that Washington is considering retaliatory measures, including tariffs, to counteract what it perceives as unfair digital service taxes and regulatory policies imposed on American tech companies.

Source: The Wall Street Journal