EU proceeds with action against Apple, Google

(Sharecast News) - The European Commission has decided to proceed with regulatory action against Apple and Google under its new digital competition rules.

Using the Digital Markets Act, the commission said it had taken a "preliminary view" that Google's search engine was prioritising results pointing to parent company Alphabet's own services over those of its rivals, breaching the requirement to treat third-party services in a "transparent, fair and non-discriminatory" way.

It added that said that Google Play, the company's app store, was stopping developers from giving consumers a "steer" on alternative offers that could be better.

The move is likely to increase tensions with US President Trump who has threatened tariffs against the 27-member bloc if moves were made to increase scrutiny of American technology firms.

Breaches of the Act can result in companies being fined 10% of revenue, or 20% if they reoffend. The commission told Apple it must make its operating systems available to devices made by competitors such as smartphones and wireless headphones, or else face the prospect of investigations and fines.

The order is designed to promote competition by making it possible for makers of rival technology to connect with Apple's devices, such as iPads and iPhones.

A second order was issued against Apple, demanding it provide a detailed timeline and methodology on how it will respond to requests from app developers to open up its systems.

"Companies operating in the EU, irrespective of their place of incorporation, must comply with EU rules, including the Digital Markets Act," said EU competition chief Teresa Ribera.

Reporting by Frank Prenesti for Sharecast.com