EU may be reassessing billion-dollar Big Tech fines as it waits for Trump
All the impending EU fines and rulings against Apple, Google, and Meta, are reportedly off the table as Europe awaits Trump -- and reveals just how political its regulations are.
The EU has reportedly paused its probes into Big Tech issues such as Apple's App Store rules
For ten years, the European Union and especially competition chief Margrethe Vestager, has been working to control Big Tech. It's done so mostly very successfully, with the region being the first to implement a Digital Markets Act (DMA) that laid out conditions -- and especially potential fines for transgressions.
Now according to the Financial Times, however, all of the regulator's plans for fines are on hold. Only what is described as technical work will continue on any of the Big Tech investigations, and for the moment there will be no fines.
It's because the main EU chiefs responsible have reached their term limits and are leaving. And it's surely because the incoming Trump Administration in the US is expected to listen to Big Tech lobbyists and push back against regulation.
"It's going to be a whole new ballgame with these tech oligarchs so close to Trump and using that to pressurise us," an unnamed senior EU diplomat said. "So much is up in the air right now."
Reportedly, two further EU officials said that regulators in Brussels were now waiting for political direction. Until they get that guidance, they will not be making their final decisions on cases such as those against Apple, Google, and Meta.
However, these comments have been denied by the European Union. "There is no delay in finalising the opened non-compliance cases, and especially not due to any political considerations," said an EU spokesperson.
Yet EU lawmakers such as MEP Stephanie Yon-Courtin have been pressing the regulators to continue, because the DMA "cannot be taken hostage" because of political or diplomatic reasons.
Yon-Courtin was among those involved in the original drafting of the EU regulations. She has asked the European Commission's president to "reassure me that your cabinet and yourself are fully supporting the effective implementation of the DMA, without further delay."
The EU and Apple
The EU was not shy about enforcing the DMA during Vestager's tenure, nor of imposing fines. In March 2024, it fined Apple $2 billion for anticompetitive practice with Apple Music -- despite Apple's streaming service being far from dominant.
It's decisions were controversial, then, and sometimes nonsensical. Plus Vestager has been swift to lambast Apple over any perceived slight against the EU.
Vestager has been successful, at least in the eyes of the EU. As well as getting is 27 member states to pass the DMA into law, it's because of the EU that Apple's iPhone switched to using USB-C for charging.
Plus it is because of the EU that Apple was forced to pay Ireland $14 billion in back taxes -- despite even Ireland saying it was wrong.
Apple may well have made that USB-C switch anyway, but it wouldn't have been with the iPhone 15 range in 2023. And Apple would never have even considered allowing third-party app stores -- and has unsuccessfully fought against them.
While Apple appears to have followed EU regulations with practically surgical precision, its rivals have described it as doing so with malicious compliance. Epic Games said Apple's EU concessions were "hot garbage."
Consequently, by June 2024, it was expected that the EU would fine Apple over its alleged failure to comply with the DMA. That appears to be one of the decisions that has been put on hold, and perhaps more because of EU administration changes than America's.
Margrethe Vestager is being replaced as Executive Vice-President of the European Commission
For in August 2024, it was announced that Margrethe Vestager would not be getting a third term as European Commissioner for Competition. She'd already publicly predicted she would be out of the role, though, so possibly decisions were already being delayed pending the changes.
What happens next
The European Union has easily been the most successful territory in imposing regulations over Big Tech, but everywhere from India to the US is working to do the same. The pressure on Apple to open up its systems is ultimately going to continue, then.
But the fact that fines, investigations, and decisions, are all being paused points to just how much regulations are really political decisions. Tim Cook has already described some of the EU's decisions as "total political crap," and it looks like he's right.
The politics will not end, however, even as the EU is said to be reviewing its processes. For as the EU pauses, Big Tech is cozying up to incoming President Trump in order to get political might on its side.
It's likely, then, that Big Tech firms will see less impact from regulation for the period of the next administration.
Whether or not that's good for consumers, though, will be irrelevant. While all sides, doubtlessly including Apple, will proclaim that they only want to protect users, this is going to be a fight between governments and Big Tech.
Or rather, it's going to continue to be. For all that it should be applauded for being the first territory to successfully implement a Digital Markets Act, the EU's decisions have favored companies over consumers.
The EU would deny that, and it has repeatedly insisted that it is working to protect users. But as its fine against Apple Music showed, the EU has continually and even unreasonably favored Spotify, a firm based in its territory.
Read on AppleInsider
Comments
Apple Music $2 billion: F
USBC: D
App Store: C
Ireland: A
Some entity has to stand up to predatory entities.
I see today Andreessen is now vetting candidates for federal positions in the T**** (the convicted felon and sexual predator) administration.
I am for anyone who stands against this.
Apple Music $2 billion: A
USBC: A+
App Store: A
Ireland: F
Apple said in September 2012 that Lightning would be the connector for the next decade. That 10 years ended with the iPhone released in 2022. The first year outside that self imposed timeline, 2023, they released the iPhone with USB-C. The USB-C deadline the EU set was December of 2024, a full year later. So, according to Apple, yes, it would have been with the iPhone 15 range in 2023.
Example: the $2 trillion U.S. tax cut in 2017 did not lower prices. It was the precursor to people complaining about inflated pricing several years later.
I can decide for myself, which Browser I want to use - or which streaming platform I want to listen to
The whole DMA is just kind of useless - other than to charge foreign Tech some "tech-tax" - and to control the Narrative in the EU.
"But the fact that fines, investigations, and decisions, are all being paused points to just how much regulations are really political decisions."
Especially as the FT reported this in its original piece included in the article:
The only fact at the moment seems to be that the EU has stated there are no political considerations.
Any bowing to external political pressure on laws specifically drawn up to deal with abuse in the digital sphere and guide its future is very likely to receive vehement pushback.
Perhaps even legal pushback.
Probably more trouble than it's worth and, IMO, the opposite should be done. A stance that sends a clear message to Trump that internal affairs are internal and interference is unwelcome. That same message should be sent to the CEOs of Big Tech which, in this context, may end up being a case the Big Tech Tail wagging the dog.
Now maybe something can be done with the decisions of the South Korean, Indian and Indonesian governments which appear to be nothing but shakedowns.
Vestager wasn't anti U.S at all. She was 200% for open markets and did the same towards European companies that tried to avoid competing. Those days are over. The politicians elected in EU are worried about X and Meta. To them Musk and Zuckerberg are foreign agents planning to meddle with European elections. Be assured that they will ban X and Meta first. Like U.S. is doing to TikTok and China did to Google. And no I don't like it, and you don't have to like this post. We really don't need for this to happen.
It is ironic that you mention browser choice when it was Apple that took the choice away from you with the obligatory use of WebKit, basically converting your 'browser' into a 'front end' for Apple's web engine.
The DSA/DMA were absolutely necessary. You may argue about the finer points of both but as solutions they are essential.
I can guarantee you that other regions will be taking them as models for their own efforts. That includes the US BTW.
They don't care about individual rights (like privacy and security) what they care about are a) running a shakedown racket (just like you know who) and b) crippling American tech companies, not to protect individual rights (which most member states trample on a daily basis) but purely for the purpose of siphoning cash out of American tech companies, and propping up and increasing revenues to EU companies. That's it period.
All this nonsense about protecting rights is just that, nonsense. I don't know if you are so clueless that you believe the things you say, or if you are just a mouthpiece for one or more of the EU companies who stand to benefit from the EU's protection racket, but your posts are so entirely counterfactual in their whole as to make one sure it's one or the other. And, sure, other countries are "learning"; just look at the shakedown going on in Indonesia right now. But, learning from what is little different from an organized crime scheme doesn't really benefit anyone but those whose pockets the money goes into.
Taken from the very first paragraph of the EU DMA/DSA package page:
"The Digital Services Act and Digital Markets Act aim to create a safer digital space where the fundamental rights of users are protected and to establish a level playing field for businesses."
https://digital-strategy.ec.europa.eu/en/policies/digital-services-act-package
The OP spoke specifically of browser choice. Prior to the DSA/DMA there was no choice other than WebKit.
Privacy and security are completely separate issues. Nothing to do with choice for users.
You are welcome to your opinion but Apple has had to make these changes as a response to new legal frameworks.
That’s not 'nonsense' when all the member states agree this legislation is necessary.
It feels like you’re acting a bit like someone who bullies others to get their way, just like a certain person who has done bad things in the past. Sometimes, people or groups need to follow their own rules, and it’s important to let them.
We need strong leaders who will stand up to unfair or harmful groups. I saw today that Andreessen is helping pick people for a future government under that same person, I support anyone who stands up against things like this. It’s important to do what’s right and fair for everyone.