Home Latest Insights | News EU Defies Trump’s Tariff Threats with Crackdown on Google and Apple, Setting Stage for Major Showdown

EU Defies Trump’s Tariff Threats with Crackdown on Google and Apple, Setting Stage for Major Showdown

EU Defies Trump’s Tariff Threats with Crackdown on Google and Apple, Setting Stage for Major Showdown

The European Union has taken a firm stance against U.S. tech giants, launching a major antitrust offensive against Google and Apple while signaling its willingness to retaliate against Donald Trump’s threats of tariffs.

The bloc’s actions come amid growing transatlantic tensions over digital regulation, with the EU asserting its authority despite warnings from Washington.

On Wednesday, the European Commission, the EU’s executive arm, announced that Google’s parent company, Alphabet, was in breach of the Digital Markets Act (DMA), a landmark law designed to curb monopolistic practices in the technology industry. Regulators accused Google of engaging in self-preferencing within its Search and Google Play platforms—an unfair practice where its own services are favored over those of competitors. The EU also ruled that Google’s Play Store restricts developers from steering consumers toward alternative services, preventing them from offering cheaper payment methods outside of Google’s ecosystem.

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The Commission’s findings signal a major escalation in Europe’s long-running campaign against Silicon Valley’s dominance. The DMA was introduced to break the stranglehold that major firms like Google, Apple, Meta, and Amazon have on digital markets, and Wednesday’s action is the strongest enforcement yet under the new law.

In response, Google lashed out at the EU’s conclusions, warning that they would hurt consumers and businesses. The company claimed that changes made to comply with the DMA had already led to unintended consequences, including increased costs for users.

Oliver Bethell, Google’s EMEA director for competition, said in a blog post that the EU’s findings would force even more changes to search results, dismissing the Commission’s approach as “misguided”.

“The Commission’s findings require us to make even more changes to how we show certain types of Search results, which would make it harder for people to find what they are looking for and reduce traffic to European businesses,” he said.

Meanwhile, Apple was also put on notice by Brussels. The EU issued guidance instructing the iPhone maker to comply with interoperability obligations under the DMA. Regulators insist that Apple must allow third-party developers greater access to its iOS mobile operating system, making it easier for rival services to integrate with its software. The goal is to prevent Apple from locking users into its ecosystem by making it difficult to transfer data or use competing services.

Apple reacted strongly to the Commission’s guidance, accusing the EU of slowing down innovation and forcing it to hand over new features for free to companies that do not play by the same rules. In a statement, Apple said it would continue discussions with regulators to clarify its concerns but made it clear that it viewed the DMA’s enforcement as an unfair burden on its operations.

“[The moves] wrap us in red tape, slowing down Apple’s ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don’t have to play by the same rules,” an Apple spokesperson said.

Defiance to Trump’s Tariff Threats

While Google and Apple battle with the EU over compliance, the broader implications of Wednesday’s regulatory assault extend beyond the tech sector. The move is an unmistakable challenge to the Trump administration, which has been warning the EU against excessive regulation of American technology firms.

Last month, Trump threatened to impose tariffs on European imports, claiming that the bloc was unfairly targeting U.S. companies with digital services taxes, fines, and regulatory restrictions. He denounced these policies as “overseas extortion”, arguing that they disproportionately affect American firms while allowing European tech players to operate with fewer constraints.

Brussels, however, has shown no intention of backing down. The EU has already signaled its readiness to retaliate against any tariffs Trump imposes, threatening to activate a new legal instrument that would allow it to take countermeasures against Washington’s economic coercion. Reports suggest that European leaders are preparing to hit back with their own trade restrictions, escalating a conflict that could disrupt global commerce and deepen the rift between the two economic powers.

The EU’s actions are a clear display of defiance against Washington’s pressure. By cracking down on Google and Apple just weeks after Trump’s threats, the bloc is sending a message that it will not be intimidated by U.S. trade policies. The European Commission, under President Ursula von der Leyen, has made it clear that it views regulation of Big Tech as a sovereign European matter, rejecting any attempts by the U.S. government to interfere in its policies.

The tech dispute is quickly morphing into a broader geopolitical standoff, with Google, Apple, and other Silicon Valley firms caught in the middle. The EU’s insistence on enforcing the DMA, despite U.S. warnings, could push Trump to escalate his tariff threats, dragging the transatlantic relationship into a full-blown economic confrontation. If the situation worsens, the tech industry could become the battleground for a trade war that would have far-reaching consequences for global markets and digital innovation.

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