Apple and Alphabet's Google could both face break-up orders from global regulators after a series of criticism for their alleged anti-competitive practices.
Regulators are now keen to investigate Apple and Google's impenetrable ecosystems and market dominance, which have allegedly made it difficult for customers to switch services.
Regulators See Break-Up Order as Resolution to Big Tech Monopoly
Google and Apple have been under investigation for some of its alleged monopolistic practices. Both companies have since then disagreed with the accusations from the regulations.
Other big tech companies are also likely to be investigated for potential Digital Markets Act (DMA) violations. Companies could face hefty fines and break-up orders due to repeated breaches, according to people familiar with the situation.
In 1984, Ma Bell was ordered to break up into seven independent companies. The decision led to the birth of one of the most powerful monopolies up to this day, AT&T. Verizon and Lumen are also part of it and are the only surviving entities.
Regulators Eagle-Eyed on Big Tech Monopoly
Last week, Apple was slammed with another antitrust case from the U.S. Justice Department (DOJ) and 16 other state and district attorney generals. The DOJ also warned that a break-up order could be considered as a remedy to restore competition in the market.
Apple was also fined $2 billion on its case against Spotify in the European Union. The 2019 case focused on the unfair practices of the company on other streaming services on top of the 30% App Store fees.
On the other hand, Google also had a tough 2023 after facing trials against Epic Games. EU antitrust chief Margrethe Vestager stated that Google should sell some of its assets to avoid any conflict of interest.
"If they don't comply with the DMA, you can imagine what Parliament will ask for. Break-ups. The ultimate goal is to make markets open, fair, and allow more innovation," said EU parliament lawmaker Andreas Schwab
