EU Warnings for Apple, Google, and Other Headlines of the Day

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Top of the Agenda

EU regulators said that Apple and Google breached a European law on fair tech competition, and threatened Google with fines. Observers had closely watched the EU’s new leadership team, which took office in December, to see whether they would continue their predecessors’ trend of enforcement against multinational tech firms. Their warnings against Apple and Google yesterday came after the Donald Trump administration said that it would consider tariffs against governments that apply digital services taxes—and that it would approach the EU’s tech regulations with “scrutiny.”

The latest. The European Commission said Apple and Google had likely violated the 2022 Digital Markets Act (DMA), which was designed to ensure fair competition.

• The commission accused Google of using its search function to steer users toward its own services and of creating unfair restrictions in the app store. Google said the required changes would “hurt European businesses and consumers.”
• It also accused Apple of creating barriers for other companies’ devices trying to connect to its iOS operating system, and told Apple to take steps to make syncing easier. Apple said the decisions “wrap us in red tape” and slow down the company’s “ability to innovate.”
• Apple received guidance on how to make changes without a violation being officially flagged. But because Google was deemed to be in violation of the DMA in preliminary findings, it could face a fine if changes are not implemented. Penalties under the act can be as high as 10 percent of a company’s global revenue.

Europe’s debate on autonomy. The warnings to tech firms come at a moment when some European leaders have argued for increased foreign policy independence from Washington.

• As Trump distanced himself from Ukraine and the United States voted alongside Russia at the United Nations in recent weeks, the president of France and incoming chancellor of Germany have called for a more autonomous European foreign policy.
• Yesterday, the European Commission proposed that a new rearmament fund for the EU only be open to the United States, the United Kingdom, and Turkey if they sign defense agreements with the bloc. The commission would also bar the use of funds for advanced weapons systems, such as U.S. Patriot missiles, with components that are restricted or operated by a third country. Brussels is in talks with Ottawa about close cooperation in its new defense initiative, the New York Times reported.
• To diversify its economic relations, the EU has sought trade deals with countries such as India, Mexico, and South Africa in recent months. 

Speaking about the decision to warn Google and Apple yesterday, EU competition chief Teresa Ribera said the bloc would not avoid regulating Silicon Valley firms for fear of U.S. retaliation. “It is important that we respect ourselves when we take decisions,” she said.

“The European Union is able to legislate [on tech regulation] because it’s so big and the market’s so big, and it has a longer history around what’s known as the GDPR, the General Data Protection Regulations that are around privacy in particular,” CFR expert Adam Segal tells the Why It Matters podcast.“Lots of people are… trying to figure out what you do with these companies that are transnational.” 

Across the Globe

Trump and Zelenskyy’s call. Trump and Ukrainian President Volodymyr Zelenskyy spoke yesterday about coordinating a monthlong partial truce between Ukraine and Russia to end strikes on energy infrastructure. Trump said the process of aligning Russia and Ukraine on their requests and needs was “very much on track,” while Zelenskyy called the conversation “positive, very substantive, and frank,” saying U.S. and Ukrainian teams were ready to meet in Saudi Arabia in the coming days. U.S. National Security Advisor Michael Waltz said Washington also agreed to help Kyiv identify air defense systems it could acquire, especially from Europe. 

Israel’s ground operation in Gaza. The Israeli military said yesterday it launched limited ground operations in central and southern Gaza, and Israel’s defense minister said the country would soon issue evacuation orders for some parts of the territory. Meanwhile, a second day of Israeli strikes yesterday killed at least forty-eight Palestinians, according to Gaza health workers. Hamas said that Israeli operations in the Netzarim corridor violate the truce with Israel and called on mediators to “step in to renew the cease-fire.”

The year in climate impacts. At least 152 “unprecedented” extreme weather eventsoccurred globally over the course of 2024, the World Meteorological Organization’s annual State of the Global Climate report said. Together, they displaced more people than in any individual year since 2008. Some of the most extreme events listed in the report were Super Typhoon Yagi, which killed hundreds of people in Southeast Asia and China, as well as a heat wave in Saudi Arabia that occurred during the Hajj pilgrimage. 

Argentina’s legislature paves way for IMF loan. The lower house of Congress voted 129–108, with six abstentions, to back a presidential decree authorizing President Javier Milei to make a new loan agreement with the International Monetary Fund (IMF). Milei has been in talks with the fund for months. Approval from at least one house of Congress is required for such loan agreements in Argentina, though Milei’s decree did not include details about the IMF’s requirements for the country.

Afghanistan, Pakistan unblock border. The countries reopened their main border crossing yesterday after hostilities between security forces prompted it to close for almost a month. Afghanistan relies heavily on food imports from Pakistan, which had been backed up during the closure. Freight traffic was allowed yesterday, and passenger traffic is due to resume tomorrow.

Protests in Turkey. Thousands of people demonstrated across the country in support of Istanbul Mayor Ekrem İmamoğlu, a main rival to President Recep Tayyip Erdoğan. İmamoğlu was detained yesterday alongside dozens of associates in what he called an effort to block his political movement. Turkish authorities have charged İmamoğlu with corruption and supporting terrorism. Authorities said today that thirty-seven people were detained for posting “provocative” content related to İmamoğlu on social media.

South Africa’s tariff review. The government is launching a review of its tariff policies as steelmaker ArcelorMittal considers closing two mills amid competition from low-cost imports from China. ArcelorMittal’s South Africa unit Itac proposed that the government create a trade surveillance mechanism designed to reduce evasion of import taxes. South Africa’s Department of Trade, Industry and Competition requested public comment on a potential tariff hike on imported steel.

Philippines favors Squad expansion. The Philippines’ armed forces chief said at a New Delhi security conference yesterday that Manila seeks to add India and likely South Korea to joint Asia Pacific military cooperation with Australia, Japan, and the United States that is known as the Squad. The informal group has conducted joint exercises to counter China’s actions in the South China Sea for over a year. Spokespeople from the Indian defense ministry and the embassies of China and South Korea did not immediately comment.

The Day Ahead

• Chinese retaliatory tariffs on $2.6 billion worth of Canadian agricultural and food products kick in.

• Generals from dozens of Ukraine’s allies meet in London to discuss peacekeeping.

• The World Athletics Indoor Championships begin in Nanjing, China.

• Pakistan’s prime minister begins a visit to Saudi Arabia.