The European Union is proceeding with regulatory actions against Google and Apple based on competition concerns. The European Commission (EC) announced preliminary charges against Google for non-compliance with Digital Markets Act (DMA) regulations, specifically regarding Google Search and the Play Store, which could result in fines of up to $35 billion. Additionally, the EC ordered Apple to make its iOS more compatible with third-party devices, such as smartwatches, headphones, and TVs. These decisions come amidst threats from US President Donald Trump to impose additional tariffs on nations that regulate US Big Tech companies.

As part of an investigation that began last March, the EC charged Google with violating the DMA by prioritizing its own services in search results over those of third-party competitors. The regulators claim that Google gives its services more prominent treatment, using enhanced visual formats and filtering mechanisms. The EC also charged Google with preventing app developers from informing customers about alternative channels for cheaper offers, stating that while Alphabet has the right to charge developer fees, the fees demanded are excessive and unjustified.

EU antitrust chief Teresa Ribera stated, “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.” The DMA, passed in 2022, allows European regulators to fine companies up to 10% of their global revenue, with the potential to double the penalty to 20% for repeat offenders. Alphabet brought in over $350 billion in revenue last year.

The commission emphasized that the charges are preliminary and that Alphabet can still defend its decisions in writing before they are finalized. The EU’s moves demonstrate its commitment to enforcing regulatory laws despite tariff threats from Trump as part of his escalating trade war with other nations. In response to Trump’s memo threatening tariffs, the EC stated that it would “respond swiftly and decisively to defend its rights and regulatory autonomy against unjustified measures.”

The EC’s decision for Apple does not involve charges at this time, but rather outlines measures the company must take to avoid them in the future. Apple must provide greater compatibility with third-party devices that connect to iPhones, including improvements to notifications for third-party smartwatches, data transfer speeds, and the pairing process for connected accessories from competing companies. Failure to comply could result in fines of over $39 billion.

The EC also ordered Apple to improve access to technical documentation for developers, allowing them to create products that interact with iPhones and iPads. Ribera stated, “Effective interoperability for third-party connected devices is an important step towards opening Apple’s ecosystem, leading to a better choice for consumers in the fast-growing market for innovative connected devices.”