EU continue big tech crackdown
The EU has this week further escalated its crackdown on tech giants, with Apple & Google both named this week for not taking sufficient measures to promote fair competition, protect consumer choice & increase transparency.
The EU has ordered Apple must open up it’s iOS operating system to ensure compatibility with third-party services and hardware, ending its tightly controlled environment and allowing greater level of competition from app developers.
Google has also been named by the commission this week, with the commission highlighting that they have not yet taken sufficient action to comply with past DMA rulings. Last year Google were advised to update their functionality around prioritizing their own services —eg Shopping, Flights, and Hotels—in search results and for restricting app developers from directing users to external platforms. If the commission rules that Google is not taking sufficient steps to be compliant, it could enforce fines of up to 10% of Google’s global annual revenue.
What does this mean for advertisers?
Long term, more competition could potentially benefit advertisers by driving down ad costs and increase ROI, but the transition may be turbulent.
For advertisers, these changes could reshape the digital advertising landscape. If Google is forced to provide a more level playing field in search results, third-party comparison and travel sites may see improved visibility, offering advertisers more diverse and potentially cost-effective placements. App developers could also benefit from less restrictive policies on in-app promotions and user redirection, opening new avenues for customer acquisition. On the Apple side, increased use of iOS may allow for better cross-platform ad tracking and performance measurement—though privacy regulations will still be a hurdle.