Big Tech gets a reality check from Europe
Like the 1990 Microsoft antitrust case that reshaped computing, the EU’s fines on Meta and Apple could begin transforming the digital marketplace
The EU has delivered a significant blow to Big Tech’s dominance, issuing fines of €500 million to Apple and €200 million to Meta for non-compliance with its Digital Markets Act (DMA). While modest for trillion-dollar companies, the precedent sets is pivotal in global efforts to curb their unchecked power. For the first time, EU regulators have wielded the DMA — legislation specifically designed to open markets dominated by tech behemoths. The Apple fine targets restrictions preventing developers from steering users to cheaper deals outside the App Store. Meta faced penalties for its “consent or pay” model limiting users’ data privacy options. Apple must now remove barriers that keep developers chained to its ecosystem. Meta must rethink its business model.
The EU fines show regulators moving beyond probes to enforcement. Like the 1990 Microsoft antitrust case that reshaped computing, these measures could begin transforming the digital marketplace. How the efforts pan out in the long term and whether they lead to a course correction will depend on the backlash from the Trump administration, which has assailed Europe’s inclination to regulate US tech companies harder.
The Trump regime’s whims notwithstanding, the DMA fine represents a compelling blueprint for India. As home to the world’s largest population and an emerging tech powerhouse, India must ensure neither consumers nor local industries are subject to monopolistic practices or coercive policies. The Competition Commission of India (CCI), which has opened many investigations, forcing companies such as Google to commit to mending their ways, is on the right path. But both CCI, and the EU must do more, given AI seems to be another hotspot of monopolistic industry.
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