The European Commission has issued a stern warning to tech giants Google and Apple, accusing them of violating the Digital Markets Act (DMA) in what could lead to significant penalties and changes in how these companies operate in Europe. On March 19, 2025, the Commission announced preliminary findings suggesting that Google’s search engine practices might breach the DMA by favoring its own services over those of competitors. This accusation aligns with concerns raised about Apple’s interoperability practices as well, which are under scrutiny following the Commission’s recent directives.
The Commission’s investigation into Google has been ongoing since March 2024, focusing on how the company handles its search engine services and its Play Store app marketplace. According to the Commission, Google is suspected of engaging in self-preferencing, where its own services, such as shopping and transport, receive more favorable placement in search results compared to rival offerings. "Alphabet treats its own services... more favourably in Google Search results than similar services offered by third parties," the Commission stated in a press release.
Furthermore, the Commission suspects that Google’s Play Store restrictions prevent app developers from directing users to external channels offering better prices or services. The EU’s Digital Markets Act contains strict requirements regarding fairness and transparency in digital service provision, and violations could result in fines amounting to 10% of a company’s global revenue. Given Google’s substantial market presence, such penalties could be financially catastrophic, particularly if repeated breaches could incur fines doubling to 20%.
Oliver Bethell, Google’s Senior Director of Competition, addressed these concerns in a recent blog post, arguing that the EU’s requirements could inadvertently hinder innovation and hurt consumers. He claimed that these findings necessitate further changes to how Google displays search results, which he argues would complicate the user experience. "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," Bethell said.
In addition to targeting Google, the EU has previously enforced actions against Apple. The Commission fined Apple €1.84 billion last year due to its practices in the music streaming market, and it has ongoing investigations into the App Store that align with findings against Google. The EU has now laid out comprehensive measures that Apple must implement to provide necessary interoperability with competitor devices like smartphones and wireless headphones. Failure to comply with these directives could also lead to substantial penalties.
Teresa Ribera, the EU’s competition chief, has emphasized that the objective behind these actions is to create a fairer digital market environment. She expressed confidence in enforcing compliance with the DMA among the tech giants, stating, “Our main focus is creating a culture of compliance with the Digital Markets Act.” Ribera further emphasized that the EU's procedures aim to ensure fair playing conditions for all businesses operating in the region, ensuring both economic growth and consumer protection.
These measures come amid rising tensions between European regulatory bodies and American tech companies, particularly as the United States has voiced concerns regarding the potential impacts of Europe’s regulatory actions. Former U.S. President Donald Trump has signaled a readiness to retaliate against European regulations, suggesting he might impose tariffs on companies viewed as unfairly treated by the EU. Such political undercurrents add another layer of complexity to the situation, as the EU undertakes its regulatory responsibilities while navigating international relations.
The stakes are high for both Google and Apple as they face allegations which could redefine their operational practices within the European market. However, the commissions' findings are just preliminary; both companies will have the opportunity to present their defense before final rulings are made. Whether this results in compliance or a contentious pushback remains an open question.
As Google and Apple prepare their responses to these accusations, it is clear that the outcome of this inquiry could set significant precedents not only for how these tech giants function within the EU but also for the future of digital market regulations worldwide.
This latest action by the European Commission represents a crucial step towards increased accountability within the tech sector, with potential ripple effects that could resonate across borders. Both consumers and businesses alike are left watching closely as these developments unfold, eager to see how they will impact the digital landscape we all engage with daily.
