Brussels is revisiting its scrutiny of major tech firms like Apple Inc. AAPL, Meta Platforms Inc. META, and Alphabet Inc. GOOGL GOOG. This comes as U.S. companies urge President-elect Donald Trump to tackle what they perceive as overzealous EU enforcement.
What Happened: The review could change the direction of these probes, which started under the EU’s digital markets regulations last March, the Financial Times reported on Tuesday.
The reassessment aligns with the European Commission’s new five-year term and Trump’s imminent return to the White House. A senior EU diplomat, aware of the review, highlighted the influence of tech leaders close to Trump, saying, "It's going to be a whole new ballgame."
While decisions and potential fines are on hold, technical work on cases continues. Some investigations are in the early stages, while others, like Google’s alleged app store favoritism, are more advanced. EU officials await political guidance to finalize decisions on cases involving Google, Apple, and Meta.
EU lawmakers urge the commission to resist U.S. pressure, while Silicon Valley anticipates lighter regulation under Trump. Meta CEO Mark Zuckerberg recently called on Trump to prevent EU fines, citing $30 billion in penalties over 20 years. The commission insists on effective rule enforcement, denying political delays.
Why It Matters: The ongoing tension between the EU and major tech companies is not new. Recently, Mark Zuckerberg accused the EU of censorship, a claim the European Commission firmly denied. This reflects the broader conflict over regulatory practices, with the EU maintaining that its regulations only require the removal of illegal content.
Furthermore, the EU’s NIS 2 cybersecurity directive has added another layer of complexity. This directive mandates enhanced cybersecurity practices, with non-compliance potentially resulting in hefty fines. However, inconsistent enforcement across EU countries could lead to challenges in uniform application, complicating the regulatory landscape for tech giants.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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