Antitrust regulators target Google and Apple for potential break-up over competition concerns

From Nasdaq.:

Antitrust regulators in the EU and U.S. are cracking down on Big Tech, with potential break-up orders for Apple and Google. This could lead to more global probes, following the opening of EU and U.S. cases, making it the first regulator-led break-up in the U.S. since AT&T’s split 40 years ago.

Google and Apple have denied the accusations against them, with regulators alleging they have created impenetrable ecosystems around their products, hindering competition. The U.S. Department of Justice issued a warning to Apple, hinting at a possible break-up order to restore competition in the smartphone market, with similar threats looming in Europe.

European regulators, led by Commissioner Vestager, are considering requiring Google to sell some assets to prevent conflicts of interest. Lawmakers in the European Parliament are pushing for bold action against Big Tech to make markets fair and open for innovation, with some suggesting break-ups as a solution.

While regulators are considering break-up orders, legal experts believe fines may be more likely. Break-ups could be challenging, especially for Apple’s highly integrated system, compared to Google. Remedies may focus on opening up hardware functionality or preventing discrimination against developers in pricing.

Experiences with structural measures like break-ups are limited but potentially tricky. Apple’s revenue primarily comes from hardware sales, followed by Services. Structural remedies will likely face legal challenges and be tested in courts. The outcome remains uncertain as regulators weigh options in this major antitrust crackdown on Big Tech.



Read more at Nasdaq.: ANALYSIS-Google, Apple breakups on the agenda as global regulators target tech