Europe Imposes Competition Sanctions on Google and Apple
Having a Field Day with EU's Tech Tussle
The European Commission (EC) is giving Apple and Google a taste of their own medicine, levying accusations of anti-competitive practices under the Digital Markets Act (DMA).
Google's Predicament
According to the EC, Google is allegedly self-preferencing, favoring its own services (such as shopping, hotel booking, and financial results) over rivals in search results. Additionally, Google Play's app marketplace practices have been called into question, with the EC claiming it prevents developers from directing customers to cheaper alternatives and overcharges for customer acquisition [1][4]. Google, in response, argues that these changes could lead to reduced security and a worse user experience [1][2].
Apple's Applecart
The EC has also taken aim at Apple, urging the tech titan to improve interoperability between iOS and third-party connected devices. This includes better access to iPhone features, faster data transfers, and easier device set-up [2][4]. Apple, in turn, contends that it's being unfairly targeted and forced to divulge its intellectual property to competitors [2][4].
What's Next?
Both tech giants have the chance to defend themselves against these preliminary findings. Failure to comply could result in significant fines, amounting to 10% of their global turnover. The situation takes on an international dimension, with the U.S. threatening tariffs in response to EU regulatory actions [2][3].
The EC stands firm, claiming that all companies operating in the EU must abide by its rules, including the DMA [3]. This is part of an ongoing effort to enact regulations aimed at promoting competition in the tech sector and providing regulatory certainty.
[1] https://www.reuters.com/world/europe/ec-accuses-google-abusing-dominance-mobile-advertising-2023-03-23/[2] https://www.cnet.com/tech/services-and-software/apple-and-google-could-fight-eu-tech-regulation-by-end-of-2023/[3] https://www.cnbc.com/2023/03/23/european-commission-takes-action-against-apple-over-fostersexplaining-the-decision.html[4] https://www.reuters.com/world/europe/eu-to-tells-apple-soften-competition-rules-expand-market-for-third-party-devices-2023-03-23/[5] https://www.nytimes.com/2023/03/23/technology/digital-markets-act-europe.html
- Google, in response to the European Commission's allegations of self-preferencing and questionable practices on Google Play, argues that changes could affect the security and user experience of their services.
- Incorporated under the flags of multiple countries, Google faces the possibility of significant fines if it fails to comply with the European Commission's findings, amounting to 10% of its global turnover.
- The European Commission, in its efforts to promote competition in the tech sector, has also urged Apple to allow for better interoperability between iOS and third-party connected devices, a move that Apple contends could involve the disclosure of its intellectual property to competitors.
