Ignoring calls from Donald Trump to soften its stance on U.S. tech giants, the European Commission has told Apple and Google that they need to clean up their act on competition.
It said they may be in breach of the EU’s Digital Markets Act by giving preference to their own products and services.
The Commission said its preliminary view was that Google parent company Alphabet, it said, was that Google Search treats parent company Alphabet’s own services more favourably than its rivals. These services—shopping, hotel booking, transport or financial and sports results, and the like—are displayed at the top of Google Search results or on dedicated spaces, with better visual formats and filtering mechanisms than those given to the company’s rivals.
Meanwhile, said the Commission, the firm’s app marketplace Google Play doesn’t comply with the DMA, as app developers are prevented from freely steering consumers to other channels for better offers. And the company is also overcharging developers for enabling the initial acquisition of a new customer.
“Both practices negatively impact many European and non-European businesses that rely on Google Search or Google Play to reach their users in the EU,” said Henna Virkkunen, executive vice-president for tech sovereignty, security and democracy.
“Ensuring that Alphabet fully complies with the DMA is key to ensure business and innovation opportunities for all providers of digital services. “
Alphabet now gets the chance to defend itself.
Apple, meanwhile, has been told that it must do more to make sure that third-party connected devices are interoperable with iOS, and streamline the way it handles requests for interoperability with iPhone and iPad devices.
The Commission’s ordered the company to give device manufacturers and app developers better access to iPhone features that interact with connected devices – such as displaying notifications on smartwatches – as well as faster data transfers and easier device set-up, for example pairing.
Meanwhile, developers looking for interoperability with iPhone and iPad features must get better access to technical documentation on features not yet available to third parties, timely communication and updates and a more predictable timeline for interoperability requests to be reviewed.
“Effective interoperability for third-party connected devices is an important step towards opening Apple’s ecosystem. This will lead to a better choice for consumers in the fast-growing market for innovative connected devices,” said Teresa Ribera, executive vice-president for clean, just and competitive transition.
“Also, from now on, developers will enjoy more transparency as to how their interoperability requests are handled by Apple. Today moves us closer to ensuring a level playing field in Europe, thanks to the rule of law.”
The move follows a threat from Donald Trump that he would impose tariffs in retaliation for “fines, practices, and policies” against U.S. firms, and describing such practices as “overseas extortion”. The EU was warned that the DMA, along with the Digital Services Act, would face scrutiny from the administration.
The Commission, though, is undaunted.
“Companies operating in the EU, irrespective of their place of incorporation, must comply with EU rules, including the Digital Markets Act,” said Ribera.
“With these decisions, we are simply implementing the law, and providing regulatory certainty both to Apple and to developers.”
Google and Apple have been approached for comment.