New EU allegations against Google could result in at least $35 billion in fines
The EU is taking competition-based regulatory actions against Google and Apple. The European Commission (EC) announced two preliminary allegations against Google for failing to comply with the Digital Markets Act (DMA) regulations related to Google Search and Play Stores, which could result in a $35 billion fine. Regulators have also ordered Apple to be more open to third-party devices such as smartwatches, headphones and TVs. The decisions were faced by U.S. President Donald Trump, threatening additional tariffs on countries that regulate large U.S. tech companies.
As part of an investigation that began last March, the EC accused Google of a DMA violation from Google on Tuesday, which favored its services (such as shopping, hotel booking, transportation, financial and sports results) to conduct search results for third-party competitors. Regulators say the company shows it “a more prominent treatment approach than others” by showing it its services with enhanced visual formatting and filtering mechanisms.
The EC also accused the company of blocking Google Play app developers from informing customers of alternative channels for cheaper offers. Although the committee said the letters have the right to charge developers for transferring customers to another channel, it claims the company demands a range of returns beyond reasonable limits – “Every time-to-long purchase of digital goods and services.”
“The two preliminary findings we adopted today are designed to ensure that letters comply with EU rules when it comes to searching EU and two services widely used in Android phones,” EU anti-Toresa Ribera said in a statement.
The DMA was passed in 2022, allowing European regulators to fine companies up to 10% of their global revenue. The committee can increase the fine to 20% in case of repeated offenders. Last year, Alphabet brought in more than $350 billion in revenue.
The Committee stressed that the allegations were not the final allegations and that the letters could still defend their decision in writing before finalization.
Despite Trump’s tariff threats to Trump as part of his trade war with other countries, the EU’s move follows a recent commitment to enforce its regulatory laws. He wrote a memorandum in late February saying he would consider the collection of “digital service tax, fines, practices and policies” for U.S. companies. In turn, the EC said it would “defend quickly and decisively defend its rights and regulatory autonomy in response to unreasonable measures”.
Although the EC’s decision to Apple has not yet involved allegations, it provides measures that companies must comply with to avoid them. First, the company must provide greater compatibility with third-party devices connected to the iPhone. Unless Apple wants to face a fine of more than $39 billion, it will have to improve the pairing process of connecting accessories such as third-party smartwatches, data transfer speeds such as point-to-point Wi-Fi and NFC, and the connection accessories from competing companies.
EC also ordered Apple to improve access to technical documentation to enable developers to interact with their products with iPhones and iPads.
“Efficient interoperability of third-party connected devices is an important step towards the open Apple ecosystem,” Ribera said in a statement. “This will provide a better option for consumers of rapidly growing innovative connected devices.”
