EU Launches New Antitrust Crackdown, Google (GOOGL.US, GOOG.US), Apple (AAPL.US) Face Regulatory and Tariff Headwinds

Recently, European regulators have taken new antitrust measures against U.S. tech giants Google (GOOGL.US, GOOG.US) and Apple (AAPL.US), while U.S. President Donald Trump has threatened to impose tariffs on the EU, accusing it of "holding American tech companies hostage overseas."

The European Commission said on Wednesday that Google, a subsidiary of Alphabet, had violated the Digital Markets Act by abusing its dominant position in the search market and by restricting competition in the app store market. Specifically, the Commission said that Google Search had engaged in "self-preferential" behavior, prioritizing Alphabet's own services over those of competitors, which is illegal under the Digital Markets Act. The Commission also said that Google's app store had restricted app developers from steering users to alternative platforms, severely hindering competition.

Google has not yet responded to the allegations.

At the same time, the European Commission also issued guidance on the Digital Markets Act compliance obligations for Apple. The Commission has asked Apple to take specific measures to achieve greater interoperability in its iOS mobile operating system, which means Apple needs to open up system interfaces to allow third-party companies to more easily integrate with Apple's platform and develop innovative products and services.

Apple responded by saying that the EU's measures would "tie the company up in burdensome regulatory processes, reduce Apple's innovation in the European market, and force the company to open new features for free to competitors who are not subject to the same rules." A spokesperson for Apple told CNBC that the company would continue to work with the European Commission to ensure that it fully understands the interests of Apple's users.

Meanwhile, the Trump administration has also repeatedly pressured the EU regulators, warning them not to over-regulate U.S. tech giants. Last month, Trump threatened to impose tariffs on Europe in response to what he called the EU's "hostage-taking" of American tech companies, including by imposing digital services taxes, fines, and unfair policies.

In response, the EU has also signaled that it will activate new "counter-coercion tools" to protect the interests of EU member states in the event of economic coercion.