The European Commission has accused the US tech companies Google and Apple of breaking its digital rules, in a landmark action that could escalate transatlantic tension with Donald Trump.
The US president has sought to exert pressure on the EU to back away from tougher regulation of American technology groups, warning that he could retaliate by imposing tariffs on foreign companies.
But on Wednesday, the commission pressed ahead with enforcement action against Apple and Alphabet, Google’s parent company, two of the world’s five largest companies by stock market value, accusing them of breaking the EU Digital Markets Act (DMA).
Breaches of the DMA can result in companies being fined 10% of worldwide revenue, or 20% if they reoffend. Based on Apple’s 2024 revenue of $391bn (£301bn), the maximum fine would be nearly $80bn.
The commission said it had taken a “preliminary view” that Google’s search engine prioritises results pointing to Alphabet’s own services over those of rivals, breaching the requirement to treat third-party services in a “transparent, fair and non-discriminatory” way.
It also said that Google Play, the company’s app store, prevents developers from steering consumers towards other channels where better offers might be available.
The commission told Apple it must make its operating systems available to devices made by competitors, such as smartphones and wireless headphones, or else face the prospect of investigations and fines.
The order is designed to promote competition by making it possible for makers of rival technology to connect with Apple’s devices, such as iPads and iPhones.
The EU issued a second order against Apple, laying out a detailed timeline and methodology for how Apple should respond to requests from app developers to open up its systems.
A spokesperson for Apple said: “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 company added: “It’s bad for our products and for our European users. We will continue to work with the European Commission to help them understand our concerns on behalf of our users.”
Google’s senior director for competition, Oliver Bethell, wrote in a blogpost: “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.”
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He said if the company could not charge reasonable fees to support the ongoing development of Android and its Play services, then it would be unable to invest in an open platform.
The EU competition chief, Teresa Ribera, said the bloc was “simply implementing the law, and providing regulatory certainty both to Apple and developers”.
Brussels opened proceedings in September designed to ensure that Apple complies with the DMA.
The EU is also investigating Meta, the parent of Facebook and Instagram, over its “pay or consent” model, under which users pay a monthly fee for an advert-free version of the social media platforms that does not use their personal data for advertising purposes.
Trump has indicated that he will factor any regulatory action against US companies into his decisions about imposing tariffs on foreign goods. The US vice-president, JD Vance, meanwhile, has railed against excessive AI regulation in a rebuke aimed at the EU’s sweeping Artificial Intelligence Act.
The US has also pushed back against Britain’s plans for a digital services tax, amid regular attacks by Elon Musk, the owner of X, on the UK prime minister, Keir Starmer. Vance has also attacked the UK’s Online Safety Act, claiming last month that free speech in the UK was “in retreat”. However, the UK government is adamant that the act will not be a bargaining chip in any negotiations between the Trump administration and Britain over tariffs.
