The European Union’s antitrust battles with American technology companies drew sharp criticism from former President Donald Trump during a virtual appearance at the World Economic Forum in Davos, Switzerland. He argued that the substantial fines levied against these companies essentially constitute a tax on American corporations. Trump, outlining his second-term agenda, fielded questions from prominent figures like Bank of America’s Brian Moynihan and Santander’s Ana Botín, and used the platform to express his disapproval of the EU’s regulatory actions.
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EU’s String of Antitrust Actions Against US Tech Companies
“They took court cases with Apple, and they supposedly won a case that most people didn’t think was much of a case, they won $15 billion or $16 billion from Apple. They won billions from Google. I think they’re after Facebook for billions and billions,” Trump stated, referring to the EU regulators. He went on to assert, “These are American companies, whether you like them or not, they are American companies, and they shouldn’t be doing that. And as far as I’m concerned, it’s a form of taxation.”
The EU’s pursuit of American tech giants has been a long-standing endeavor. A notable instance was the €13 billion fine imposed on Apple for alleged back taxes owed to Ireland. This penalty significantly impacted Apple’s Q4 earnings, reducing its earnings per share from $1.64 to $0.97. In March 2024, Apple faced another EU fine of $2 billion in its ongoing dispute with Spotify, accused of leveraging its market dominance to stifle competition in music streaming app distribution.
Google also found itself on the receiving end of EU antitrust measures. In September 2024, the company was ordered to pay $2.7 billion for manipulating its price comparison tool to disadvantage European competitors. Furthermore, Google continues to grapple with a 2011 antitrust case concerning its Android operating system, which the EU alleges is used to impose unfair restrictions on device manufacturers and mobile network operators, solidifying Google’s search dominance.
Meta Platforms, formerly Facebook, has also faced scrutiny, incurring a €797 million fine in November for alleged antitrust breaches related to its Facebook Marketplace service. This followed a $1.3 billion fine in 2023 for alleged data protection violations. Amazon and Microsoft have not been exempt from the EU’s regulatory actions. Amazon narrowly avoided a potential $47 billion in antitrust fines by agreeing to modify its business practices in the EU. Microsoft recently faced a statement of objections regarding its bundling of Teams software with its Office 365 and Microsoft 365 suites.
Parallel Antitrust Battles in the US
The EU’s actions mirror similar antitrust efforts within the US. The Department of Justice (DOJ), following a successful antitrust case against Google’s search business in August, indicated its intent to dismantle the tech giant in November. Google is currently appealing this decision. The DOJ has also filed an antitrust suit against Apple, accusing the company of maintaining an illegal monopoly by hindering consumer switching from iPhones and imposing restrictions on app developers and distribution.
The Federal Trade Commission (FTC) has launched antitrust lawsuits against both Amazon and Meta. The Amazon suit accuses the e-commerce behemoth of using its market power to unfairly disadvantage other retailers through anti-discounting practices and mandatory use of its fulfillment service for Prime eligibility. The Meta lawsuit, scheduled for trial in 2025, alleges an illegal “buy-or-bury” strategy employed to eliminate competing social platforms, with the FTC seeking the divestiture of Instagram and WhatsApp. Initially filed under the Trump administration, the Meta case was refiled by Lina Khan, the FTC chair under the Biden administration, after an initial dismissal.
Shifting Dynamics in Tech and Politics
Leading up to the 2024 election, there was a notable shift in Big Tech’s relationship with then-candidate Trump. Meta CEO Mark Zuckerberg lauded Trump’s response to an assassination attempt, despite previous threats from Trump to imprison him. Amazon founder Jeff Bezos, who had a contentious relationship with Trump during his first term, also expressed support, with Amazon contributing $1 million to Trump’s inauguration campaign. Bezos even intervened to prevent the Washington Post’s editorial board, which he owns, from endorsing Kamala Harris.
Google and Microsoft each donated $1 million to Trump’s inauguration, as did Apple CEO Tim Cook and OpenAI CEO Sam Altman. These tech leaders prominently attended the inauguration, seated directly behind Trump’s podium. This confluence of Big Tech seeking Trump’s favor and his vocal defense against EU antitrust measures suggests a potentially more lenient regulatory landscape for these companies in the coming years. The evolving relationship between the tech industry and the political arena will undoubtedly continue to shape the future of antitrust enforcement and the global technology landscape.
