Alphabet’s Google and Elon Musk’s X could be the next companies to face fines from European regulators as the EU remains firm in its enforcement of new antitrust rules aimed at curbing Big Tech’s dominance.
This follows the recent imposition of the first penalties under the landmark Digital Markets Act (DMA), which saw Apple and Meta fined a total of 700 million euros ($797 million) for violating the law. The EU fines have sparked concerns in the U.S., with President Donald Trump criticizing the legislation as a tariff on American companies.
However, EU antitrust chief Teresa Ribera has dismissed these concerns, asserting that all companies operating in the EU must comply with European laws and respect European values.
The fines against Apple and Meta, while substantial, are relatively modest compared to previous penalties under the EU’s antitrust regime. However, the European Commission’s decision to proceed with the penalties signals its determination to enforce the DMA, which aims to promote fair competition and facilitate easier transitions between competing online services.
The real test for the EU’s competition enforcement will be its handling of future cases, particularly the ongoing investigation into Google’s advertising business. If the EU were to order Google to divest parts of its ad tech business, it would be the first time such a drastic step has been taken in an antitrust case.
The European Commission is also closely watching U.S. legal proceedings against Google, with a recent court ruling finding that Google illegally dominates certain online advertising markets. This ruling could provide additional support for the EU’s case.
As the EU continues to press ahead with its regulatory efforts, questions remain about whether political factors, including potential retaliatory actions by the U.S., could influence the Commission’s approach to regulating Big Tech in the future. However, EU lawmakers have emphasized the importance of maintaining strong enforcement of competition laws to ensure fair market conditions for both consumers and smaller competitors.
