Concerns Arise as EU Deliberates on Tech Giant Regulations
EU Cracks Down on Tech Giants: Apple, Alphabet, and Qualcomm in Regulatory Spotlight

By: Alex Freidmen


Executive Discussions

Top executives from Apple Inc (AAPL), Google’s parent company, Alphabet Inc (GOOG, GOOGL), and Qualcomm Inc (QCOM) recently held meetings with EU Antitrust Chief Margrethe Vestager. The focus was on regulatory issues and compliance with competition policies, particularly the Digital Markets Act (DMA) and general competition rules.

Specific Concerns and Impact

In discussions with Apple’s CEO Tim Cook, Vestager emphasized the importance of allowing app distribution outside of Apple’s AppStore and addressed ongoing competition cases, including those related to Apple Music. The conversations with Sundar Pichai, CEO of Alphabet and Google, revolved around the design of choice screens, Google’s approach to self-preferencing under the DMA, and the Google ad tech antitrust case.

Regulatory Implications

The DMA plays a significant role in these discussions as it designates companies with over 45 million monthly active users and a market capitalization of 75 billion euros as “gatekeepers.” Compliance with regulations such as making messaging apps interoperable with competitors’ apps and allowing users to choose pre-installed apps on their devices is crucial.

Broader Regulatory Environment

EU regulators have previously clashed with big tech companies, imposing hefty fines on firms like Google and Microsoft for violating antitrust norms. Microsoft, for instance, faced scrutiny for allegedly bundling its Teams videoconferencing app with Office productivity software. Strategic merger deals, including Amazon.Com Inc’s IRobot Corp and Adobe Inc’s takeover of Figma, have also come under the EU regulatory scanner.

Final Considerations

These discussions are integral to shaping how major tech companies operate within the EU, ensuring compliance with its evolving digital and competition regulations. They underscore the EU’s commitment to ensuring fair competition and consumer choice in the tech sector, with companies facing increased scrutiny to maintain a level playing field.

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