The European Union has thrown down the gauntlet to Big Tech on more than one occasion. But the latest spat between regulators and tech giants feels like a stronger statement than before.
It comes against a backdrop of worsening relations with the United States, as President Donald Trump threatens tariffs in retaliation for perceived discrimination against the US and its business interests. Trump has made clear his opinion on the guardrails being put on tech companies in Europe, believing them to be a tariff on the US. The latest shot from the EU is unlikely to help his mood.
The target this time, under the Digital Markets Act (DMA), is Google – specifically, allegations that its search business favours the company’s own services and that developers cannot easily inform users about potential offers outside the store.
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Apple, meanwhile, was told to make its phones and tablets more easily interoperable with third-party smartwatches, virtual reality headsets and headphones. It is a move that has led to accusations of micromanaging the development of products.
The tech companies have hit back, with concerns over the impact on security and the potential effect on competition in the EU.
“We will keep engaging with the commission and comply with its rules,” said Google’s senior director of competition Oliver Bethell following the EU’s announcement. “But today’s findings now increase the risk of an even worse experience for Europeans. The DMA is designed to regulate large platforms like Google, Apple and Meta, and boost competition, but in reality, it is having the opposite effect by hurting European businesses and consumers.”
Apple had equally strong words.
“Today’s decisions wrap us in red tape, slowing down Apple’s ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don’t have to play by the same rules,” it said. “It’s bad for our products and for our European users.”
The implication is clear: if Europe forces companies to do this, the result could be fewer services and products available to people in Europe.
It is no surprise that the tech industry is pushing back on the new rules. When you have dominated in an environment with relatively flexible rules, any sort of curbs to that feels like a restriction.
That is not to say there is no reason to be concerned; Apple may well have a point. But the EU is, in the words of European Commission executive vice-president Teresa Ribera, simply implementing the law.
There were some changes to how the commission is approaching this, however. While Ribera isn’t being deterred from implementing the law, there were no big press conferences to accompany this week’s announcement. If the intention was to take down the temperature, this may have worked – under ordinary circumstances.
The second Trump presidency, however, is no ordinary situation. The potential implications of that remain unknown.
