Apple and Google are targeted by EU regulations.
Reuters, March 19, Brussels As Europe’s antitrust authorities resumed their onslaught on Big Tech, Google (GOOGL.O) was slammed with two accusations on Wednesday for violating historic EU regulations, and Apple (AAPL.O) was compelled to assist competitors in connecting with its iPhones and iPads.
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Concerns that Google and Apple could not be adhering to the Digital Markets Act, which attempts to limit the influence of Big Tech through a set of dos and don’ts, have put them in the crosshairs of the European Commission since March of last year.
Confirming a Reuters report on February 21, the EU competition watchdog on Wednesday released preliminary findings accusing Google of DMA violations in both categories.
The Google case focused on whether it favors its affiliated search services, like Google Flights in Google Search, and if it prohibits app developers from telling consumers about deals outside of its app store, Google Play.
Six months after initiating so-called specification procedures against the iPhone manufacturer, the Commission has issued two directives to Apple to allow competitors access to its ecosystem.
The company’s actions on its app store, Google Play, were the subject of the first charge in the Google case. According to regulators, Alphabet technically prohibits app makers from freely directing users to other channels in search of cheaper deals.
In the second complaint, authorities said that Google gave preference to its own services over competitors, including Google Shopping, Google Hotels, and Google Flights.
The actions “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,” said Teresa Ribera, the head of the EU antitrust agency.
Google retaliated, claiming that businesses and consumers are being harmed by EU competition laws.
“The Commission’s findings require us to make even more changes to how we show certain types of Search results, which would make it harder for people to find what they are looking for and reduce traffic to European businesses,” Google senior director for competition Oliver Bethell wrote in a blog post.
In order for competitor manufacturers of smartphones, headphones, and virtual reality headsets to smoothly link with iPhones and iPads, Apple must grant them access to its technology and mobile operating system, according to the first EU decision against the corporation.
The second lays out a schedule for Apple’s response to app developers’ requests for interoperability with other systems.
Apple said that the EU rule will benefit its competitors while harming users.
“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,” the business wrote in an email.
Both our products and our European customers suffer as a result. On behalf of our users, we will keep collaborating with the European Commission to assist them comprehend our concerns,” the statement continued.
Google faces fines of up to 10% of its worldwide yearly sales if it is found to have violated the DMA. In the past few decades, the EU has fined Google more than 8 billion euros ($8.7 billion) for numerous antitrust offences.
If Apple disregards Wednesday’s directive, it may be subject to an investigation and possible fine.
At 1540 GMT, Alphabet shares were up 1%. Shares of Apple were up 1.6%.
$1 is equivalent to 0.9163 euros.
Foo Yun Chee reported; Sudip Kar-Gupta, Matt Scuffham, and Jan Harvey edited.
