It was a dark day for Apple and Google as they faced major setbacks in two of the largest competition cases in European Union history. Apple was ordered to pay a massive €13 billion (R256.42 billion) in back taxes to Ireland, while Google failed to overturn a €2.4 billion (R47.34 billion) fine for abusing its dominance in the search market.
These landmark rulings come as Margrethe Vestager, the EU’s competition commissioner, nears the end of her decade-long battle against Silicon Valley giants. The decisions by the EU’s highest court may trigger further antitrust cases against US tech firms.
The Beginning of a New Era for EU Antitrust Enforcement
“I am afraid we’re only at the beginning,” Vestager said after the double victory. “Or, rather, the end of the beginning.” With her departure on the horizon, a new era for the European Commission is set to unfold. The incoming EU leadership is committed to strengthening regional companies to compete against American and Chinese tech giants.
The frontrunner to succeed Vestager is Teresa Ribera, Spain’s minister for ecological transition and a socialist politician. Ribera is expected to take on the mantle later this year, inheriting several ongoing cases, including a fourth antitrust challenge against Google, focused on its advertising technology (adtech) business.
The EU has signalled that breaking up Google’s adtech operations may be the only solution to address its market dominance. The US Department of Justice is also pursuing a similar course, with a trial already underway. Vestager acknowledged that the case against Google is highly advanced, telling Bloomberg TV that “it’s difficult for us to see any other solution.”
Digital Markets Act: A Game-Changer for Big Tech
Although Ribera has no prior experience in antitrust enforcement, she will inherit a powerful tool in the form of the EU’s new Digital Markets Act (DMA). This law, championed by Vestager, is designed to curb the power of big tech companies and ensure a fairer market. The DMA grants the EU sweeping powers to impose heavy fines and, in extreme cases, order the breakup of companies.
The potential for further scrutiny of Apple and Google under these new regulations is high. Earlier this year, the EU launched a full-scale investigation into Apple, Google, and Meta, warning that failure to comply could lead to even more severe penalties.
Former European Central Bank President Mario Draghi also published a report calling for a revamp of EU competition rules, ensuring European firms can compete effectively with American and Chinese tech giants.
A Tough Road Ahead for Big Tech in Europe
As Vestager prepares to step down, her successor will likely face increasing pressure to hold big tech accountable. Ribera, if appointed, will have to navigate a challenging landscape, using the EU’s new antitrust tools to level the playing field.
Apple and Google are unlikely to escape further scrutiny anytime soon. With the DMA in place and ongoing investigations, the tech giants may be facing more penalties and possible breakups as the EU continues to push for fair competition in the digital economy.
">Virgo
Follow on X
