Europe scored two major wins against Big Tech, as the EU’s top court upheld multibillion-euro penalties against Google for antitrust violations and Apple for unpaid taxes. The rulings come as the bloc intensifies scrutiny of tech giants like Meta, Microsoft, and Amazon, too
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Europe secured two major wins against Big Tech on Tuesday, as Google and Apple lost long-running legal battles that underscored the European Union’s increasing determination to rein in the world’s largest technology companies.
In a blow to Google, the European Union’s top court rejected the tech giant’s final appeal against a €2.4 billion ($2.7 billion) antitrust fine imposed by the European Commission. The ruling upheld the penalty for Google’s violation of antitrust rules through its comparison shopping service, a case that dates back over a decade. The ruling sets a significant precedent as the EU intensifies its scrutiny of tech monopolies.
On the same day, Apple was dealt a financial blow when the European Court of Justice ruled that the company must repay €13 billion ($14.34 billion) in back taxes to Ireland. The European Commission had earlier deemed that Ireland provided unlawful state aid to Apple, allowing the company to avoid paying billions in taxes that were owed under EU law. Apple had previously challenged the ruling but now has no further legal recourse.
These decisions are seen as significant victories for outgoing European Commissioner for Competition Margrethe Vestager, who has spent a decade leading the EU’s aggressive campaign to curb the power of Big Tech. Vestager is expected to step down in November.
Apple and Google are not the only giants the European Commission has been looking to cut down to size. Companies like Meta, Amazon, and Microsoft, too, are on its radar.
Meta to face hefty fine soon?
On July 25, Reuters reported that Meta is expected to face its first EU antitrust fine for tying its classified advertisements service, Facebook Marketplace, to its social network. The European Commission had accused Meta of unfairly bundling the services, giving Marketplace an advantage over competitors. While the fine could potentially reach $13.4 billion, equivalent to 10 per cent of Meta’s global revenue in 2023, penalties in such cases typically fall well below the maximum cap.
In a separate case, the Commission has also charged Meta with failing to comply with the Digital Markets Act (DMA) by introducing an advertising model that requires users to pay or consent to data tracking. The outcome of this case is expected in the coming months.
Microsoft in EU’s crosshairs
Meanwhile, Microsoft has also been caught in the regulatory web. On July 10, the company relinquished its board observer seat at OpenAI, the maker of ChatGPT, amid concerns from antitrust regulators in the EU, UK, and US over its $10 billion investment in the AI company. The move came as Microsoft faced scrutiny over its integration of AI services within its ecosystem.
In a separate development in June, the European Commission charged Microsoft with unlawfully bundling its Teams communication app with its Office suite, pushing for a clearer separation of services.
Amazon faces compliance pressure
Amazon, too, is under the EU’s watchful eye. In July, the European Commission asked the e-commerce giant to provide details about how it is complying with the bloc’s Digital Services Act (DSA), particularly regarding transparency in its recommendation algorithms. This comes after Amazon lost a bid in March to delay implementing key parts of the DSA, which regulates content moderation and online transparency across Europe.
With antitrust fines, legal challenges, and new laws targeting the digital economy, Europe is sending a clear message to Silicon Valley: the era of unchecked dominance is over.
With inputs from agencies