EU Commission Turns the Spotlight on Alphabet & Apple’s Digital Practices

Key Takeaways

• Alphabet Faces DMA Scrutiny: The European Commission is investigating Alphabet for potential self-preferencing in Google Search and restrictions on app developers in Google Play.
• Google’s Search and Play Concerns: Preliminary findings suggest Alphabet is giving its own services preferential treatment in search rankings and limiting developers’ ability to direct users to alternative purchasing options.
• Apple Must Improve Interoperability: The Commission is requiring Apple to enhance integration between its devices and third-party products, with better data transfer and clearer developer access to technical documentation.

Deep Dive

The European Commission is cracking down on two of the tech world’s biggest names, Alphabet and Apple, under the Digital Markets Act (DMA). These actions come as part of a larger effort to ensure that the digital marketplace stays fair, competitive, and innovative—especially for the smaller players who rely on these platforms to reach customers. Let’s dive into what’s happening with both companies.

Alphabet’s Google Search and Google Play app store have long been cornerstones of the digital experience, but the Commission is now questioning whether Alphabet has been playing fair. The issue? Alphabet’s practices around its search engine results and its app store.

First up, Google Search. According to the European Commission, Alphabet is giving its own services—like shopping, hotel bookings, and transport—a significant boost in search rankings. While these types of self-preferencing aren’t uncommon in the tech world, the DMA is clear that gatekeepers like Alphabet can’t treat their services more favorably than those of third-party competitors. The Commission’s preliminary findings suggest Alphabet has been doing just that, putting its offerings front and center while relegating rival services to the back of the line. Google’s shopping results, hotel bookings, and even sports results seem to get special treatment, showing up in prominent positions, complete with enhanced visuals and dedicated spaces. The Commission isn’t convinced Alphabet’s changes to the search engine go far enough to meet DMA standards, despite some adjustments in the past.

Then there’s Google Play, where the Commission is raising concerns about Alphabet’s control over app developers. Under the DMA, app developers are supposed to be able to direct their users to other, potentially cheaper, purchasing options. The idea is to allow developers to steer users to alternative channels if they want. But Alphabet’s rules seem to prevent this, according to the Commission’s preliminary findings, by restricting how developers can inform users about deals outside the Play Store. This, coupled with Alphabet’s hefty fees for digital goods, is raising eyebrows in Brussels.

While these are just preliminary findings, they point to serious potential breaches of the DMA, and Alphabet now has a chance to defend its actions. If the Commission decides that Alphabet has indeed violated the law, we could see more significant regulatory steps taken.

The Commission Steps In

Meanwhile, Apple is facing a slightly different regulatory challenge, but one that’s no less important. While Alphabet’s issues are about fairness and transparency, Apple is being asked to play nice with other devices. Enter the Commission’s specification decisions.

Under the DMA, Apple is required to allow third-party devices and apps to integrate smoothly with its iOS ecosystem. It’s all about interoperability—making sure that Apple’s devices can work seamlessly with those made by other manufacturers, whether it’s a smartwatch, a pair of headphones, or a TV. The Commission has now adopted a set of measures that Apple must follow to comply with these rules.

These measures focus on nine key iOS connectivity features that will help third-party devices communicate more effectively with iPhones and iPads. Think better data transfer speeds, easier pairing, and more integration options—features that could make Apple devices work even better with the growing market of connected gadgets. This move should give device manufacturers more room to innovate and enhance the user experience, while still ensuring that privacy and security remain top priorities.

But that’s not all. The Commission is also pushing for a more transparent process for developers who want to integrate their apps or devices with Apple’s operating systems. Developers will now have clearer access to technical documentation and a more predictable timeline for how their interoperability requests will be handled. The goal here is to open up more opportunities for innovation, while making sure that Apple plays by the rules and gives consumers a wider array of compatible products.

What’s Next for Alphabet and Apple?

While Alphabet faces the threat of penalties if the Commission’s concerns are confirmed, Apple is on the hook for making changes to its interoperability practices. For Alphabet, it is clear that the company now has the chance to respond to the Commission’s preliminary findings. This could mean defending its search results and Play Store rules, or taking further action to align with the DMA. If the findings stand, Alphabet could face a formal non-compliance decision—potentially resulting in hefty fines or other regulatory actions.

Apple, on the other hand, must implement the Commission’s measures to ensure its devices play well with others. But the focus here is on compliance and cooperation, not penalties. These changes are designed to help the tech giant foster a more open ecosystem—one that lets developers innovate freely while still maintaining a balance with its own operating systems and managing risks.

As both Alphabet and Apple work through their respective challenges, the Commission will continue to keep a close eye on their progress. How these companies respond could set important precedents for the future of digital regulation—not just in Europe, but around the world.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.