US tech giants on the rack as EU risks fresh Trump fury

The European Commission is tightening the screw on US tech giants – risking further threats from the Trump administration – with both Google parent Alphabet and Apple facing enforcement action under the Digital Markets Act.

In preliminary findings published this week, both Google Search and Google Play Store have been found in breach of the legislation.

The Commission said: “Alphabet treats its own services, such as shopping, hotel booking, transport, or financial and sports results, more favourably in Google Search results than similar services offered by third parties.

“More specifically, Alphabet gives its own services more prominent treatment compared to others by displaying them at the top of Google Search results or on dedicated spaces, with enhanced visual formats and filtering mechanisms.”

For the finding concerning Google’s Play Store, the Commission explained: “Alphabet technically prevents certain aspects of steering, for instance, by preventing app developers from steering customers to the offers and distribution channels of their choice.

“Whilst Alphabet can receive a fee for facilitating the initial acquisition of a new customer by an app developer via Google Play, the fees charged by Alphabet go beyond what is justified. For example, Alphabet charges developers a high fee over an unduly long period of time for every purchase of digital goods and services.

The EU has previously targeted Apple over unfair steering rules, fining the iPhone giant €1.84bn a year ago following a long-running competition investigation of the music streaming market on iOS, which predated the DMA.

While Google has made a series of changes to how it operates its search engine and the Play Store in the EU in response to the DMA coming into force, the Commission does not believe these have gone far enough.

Commission EVP in charge of competition matters Teresa Ribera said: “The two preliminary findings we adopt today aim to ensure that Alphabet abides by EU rules when it comes to two services widely used by businesses and consumers across the EU, Google Search and Android phones.

“Let me be clear: Our main focus is creating a culture of compliance. Non-compliance proceedings are reserved for situations where attempts at dialogue have not been successful.”

Alphabet now has the chance to exercise its rights of defence by examining the documents in the Commission’s investigation file and replying in writing to these preliminary findings.

Meanwhile, Apple has been told by the Commission that it will also have to open up access to the iOS operating system, which is currently solely available on Apple devices, including the iPhones and iPads.

The first set of measures concerns nine iOS connectivity features, predominantly used for connected devices such as smartwatches, headphones or TVs. The measures will grant device manufacturers and app developers improved access to iPhone features that interact with such devices, faster data transfers and easier device set-up.

The second set of measures improves the transparency and effectiveness of the process that Apple devised for developers interested in obtaining interoperability with iPhone and iPad features. It includes improved access to technical documentation on features not yet available to third parties, timely communication and updates, and a more predictable timeline for the review of interoperability requests.

This marks the first time the EU has issued an order to a company for infringing regulations set out in the DMA, although Apple still has a chance to respond.

Breaches of the DMA can result in companies being fined 10% of worldwide revenue. Alphabet’s 2024 revenue reached $348bn, while Apple’s was $391bn.

US president Donald Trump has indicated that he will factor any regulatory action against US companies into his decisions about imposing tariffs on foreign goods. Last month, two members of the US House of representatives sent a letter to Commission Vice-presidents Henna Virkkunen and Teresa Ribera arguing that the DMA was directed against US companies and that the fines incurred were equivalent to taxes.