The European Union’s latest enforcement actions under the Digital Markets Act (DMA) have set the stage for a confrontation with some of the world’s largest tech companies.
As the EU has moved to hold these companies accountable for alleged anti-competitive practices, it risked further exacerbating US President Donald Trump’s tariff policy.
On March 19, the European Commission issued preliminary findings against Alphabet, accusing the tech giant of failing to comply with DMA provisions related to its Google Play Store and search services.
The allegations centred on Google restricting app developers from informing users about offers outside the Google Play ecosystem and favouring its own services, such as Google Flights and Google Shopping, over competitors.
Simultaneously, Apple has been directed to implement measures ensuring greater interoperability within its ecosystem.
The EC’s decisions on March 19 compelled Apple to facilitate connectivity between its iOS platform and rival technologies as well as to respond to developers’ requests for broader interoperability.
Teresa Ribera, the commission’s Executive Vice-President for a Clean, Just and Competitive Transition, said the measures would “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”, according to a Reuters report on March 19.
Apple has pushed back, arguing the regulations stifled innovation and forced it to offer proprietary features to competitors for free.
Meanwhile, Facebook owner Meta has pressed ahead with the European rollout of its AI-driven chat assistant, MetaAI, despite previous regulatory roadblocks.
Last year, the Irish Data Protection Commission halted Meta’s plans to use EU-based user data for training its AI models.
Despite that, the company has now announced plans to introduce MetaAI across multiple European languages, embedding it within its Facebook, Instagram, WhatsApp and Messenger services.
Meta’s global policy chief Joel Kaplan has criticised Europe’s increasingly stringent regulatory approach, warning that it risked side-lining the continent in the global AI race.
That narrative aligned with Meta CEO Mark Zuckerberg’s broader position advocating for a more innovation-friendly regulatory environment.
The DMA crackdown has unfolded against a backdrop of rising transatlantic tensions. US President Donald Trump has issued a stark warning against EU regulatory actions targeting US tech firms, characterising them as “overseas extortion.”
His administration has signalled potential retaliatory tariffs if the EU persisted with threatening hefty fines and restrictive regulations.
Trump’s stance reflected longstanding US concerns that European digital policies disproportionately impacted US firms while leaving domestic competitors unscathed.
The White House has indicated that regulatory measures such as the DMA and the Digital Services Act (DSA) would be scrutinised closely, with trade countermeasures firmly on the table.
For the EU, the enforcement of the DMA was a critical test of its ability to rein in Big Tech without caving to external pressure.
The regulation was allegedly designed to foster competition and protect consumer choice but wavering on enforcement could undermine its credibility as a regulatory power. If fines against non-compliant companies are watered down in response to US threats, it would send a message about the EU’s ability to uphold its own legal framework in the face of geopolitical headwinds.
Conversely, the risk of escalating trade tensions with the US could occur. A trade war, particularly one involving retaliatory tariffs on European exports, could have significant economic repercussions, experts have warned.
The EU must strike a balance between asserting its regulatory authority and maintaining stable transatlantic economic relations, many felt.
