Technologies

Apple and Meta Hit With EU Fines, Ordered to Improve Consumer Choice

The European Commission has demanded that the two tech companies give people more scope to decide how their data is used and better access to deals.

The EU’s crackdown on Big Tech began in earnest on Wednesday, as the European Commission issued the first fines under the Digital Markets Act, a piece of regulation designed to keep major players in the technology world from abusing their dominant position in the industry.

Apple’s fine, the bigger of the two, totals 500 million euros ($570 million), and follows an investigation into whether the company has been preventing customers from viewing and accessing offers that could save them money — cheaper streaming subscriptions, for instance — if they paid outside of its App Store ecosystem. The European Commission found that Apple prevents app developers from informing people about cheaper ways to pay, and has ordered the company to change this practice.

Meta, meanwhile, has received a fine of 200 million euros ($228 million), due to the fact it provides people in Europe with a binary choice to either use Meta’s platforms — including Facebook, Instagram and WhatsApp — for free and accept the company will combine your data across services, or pay a premium to ensure an ad-free experience in which your data is kept separate.

Since the European Commission initially told Meta this model did not comply with the DMA, the company introduced new practices that provide people with more choice over how their data is used. But the company has still received a fine for its previous model.

Silicon Valley and the EU have long had a fractious relationship. Almost 10 years ago, Apple CEO Tim Cook dismissed a massive EU tax bill as «political crap.» But with geopolitical tensions between Europe and the US at a high right now, the fines are more divisive than ever. It’s often tricky to see how the high-level regulatory decisions affect the tech industry, but you only need to look at Apple dropping the lighting port on the iPhone in favor of USB-C charging to understand the power of the EU to sway the behavior of tech companies.

The aim of the Digital Markets Act is twofold. It gives up-and-coming tech companies an opportunity to prove themselves in an industry dominated by the world’s wealthiest companies. It’s also designed to ensure tech users across Europe (and sometimes further afield) have access to the best services and deals, plus the ability to decide for themselves how to spend their money and how their data is used. The European Commission does have the power to fine companies up to 10% of their annual global revenue under this regulation, but these fines fall below this threshold in an effort to be proportionate with the specific violations of the law.

«Enabling free business and consumer choice is at the core of the rules laid down in the Digital Markets Act,» Henna Virkkunen, executive vice president for technological sovereignty at the European Commission, said in a statement Tuesday. «This includes ensuring that citizens have full control over when and how their data is used online, and businesses can freely communicate with their own customers. The decisions adopted today find that both Apple and Meta have taken away this free choice from their users and are required to change their behaviour.»

But to the Silicon Valley tech giants, the EU’s approach can often seem unnecessarily punitive, in some cases forcing them to make changes that they argue are actually worse for users. In a statement issued on Wednesday, a spokesperson for Apple accused the European Commission of moving the goalposts, and said the company planned to appeal the decision.

«Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,» the company’s spokesperson said. «We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for.»

Meanwhile, Meta’s chief global affairs officer Joel Kaplan said the European Commission was «attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.» He added, «This isn’t just about a fine. The Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service. And by unfairly restricting personalized advertising the European Commission is also hurting European businesses and economies.»

It’s likely that Meta, feeling aggrieved over being penalized even after making multiple changes to its business model, will also appeal the fine. The company remains adamant there’s nothing in the Digital Markets Act to justify the changes the European Commission is asking it to make.

Technologies

Google races to put Gemini at the center of Android before Apple’s AI reboot

Google is using its latest Android rollout to position Gemini as the AI layer across phones, Chrome, laptops and cars.

Google is using its latest Android rollout to make Gemini less of a chatbot and more of an operating layer across the phone, browser, car and laptop, just weeks before Apple is expected to show its own Gemini-powered Apple Intelligence reboot at WWDC.
Ahead of its Google I/O developer conference next week, the company previewed a number of Android updates, including AI-powered app automation, a smarter version of Chrome on Android, new tools for creators, a redesigned Android Auto experience, and a sweeping set of new security features.
Alphabet is counting on Gemini to help Google compete directly with OpenAI and Anthropic in the market for artificial intelligence models and services, while also serving as the AI backbone across its expansive portfolio of products, including Android. Meanwhile, Gemini is powering part of Apple’s new AI strategy, giving Google a role in the iPhone maker’s reset even as it races to prove its own version of personal AI on the phone is further along.
Sameer Samat, who oversees Google’s Android ecosystem, told CNBC that Google is rebuilding parts of Android around Gemini Intelligence to help users complete everyday tasks more easily.
“We’re transitioning from an operating system to an intelligence system,” he said.
As part of Tuesday’s announcements. Google said Gemini Intelligence will be able to move across apps, understand what’s on the screen and complete tasks that would normally require a user to jump between multiple services. That means Android is moving beyond the traditional assistant model, where users ask a question and get an answer, and acting more like an agent.
For instance, Google says Gemini can pull relevant information from Gmail, build shopping carts and book reservations. Samat gave the example of asking Gemini to look at the guest list for a barbecue, build a menu, add ingredients to an Instacart list and return for approval before checkout.
A big concern surrounding agentic AI involves software taking action on a user’s behalf without permissions. Samat said Gemini will come back to the user before completing a transaction, adding, “the human is always in the loop.”
Four months after announcing its Gemini deal with Google, Apple is under pressure to show a more capable version of Apple Intelligence, which has been a relative laggard on the market. Apple has long framed privacy, hardware integration and control of the user experience as its advantages.
Google’s Android push is designed to show it can bring AI deeper into the device experience while still giving users control over what Gemini can see, where it can act and when it needs confirmation.
The app automation features will roll out in waves, starting with the latest Samsung Galaxy and Google Pixel phones this summer, before expanding across more Android devices, including watches, cars, glasses and laptops later this year.
The company is also redesigning Android Auto around Gemini, turning the car into another major surface for its assistant. Android Auto is in more than 250 million cars, and Google says the new release includes its biggest maps update in a decade and Gemini-powered help with tasks like ordering dinner while driving.
Alphabet’s AI strategy has been embraced by Wall Street, which has pushed the company’s stock price up more than 140% in the past year, compared to Apple’s roughly 40% gain. Investors now want to see how Gemini can become more central to the products people use every day.
WATCH: Alphabet briefly tops Nvidia after report of $200 billion Anthropic cloud deal

Technologies

Waymo recalls 3,800 robotaxis after glitch allowed some vehicles to ‘drive into standing water’

Waymo issued a voluntary recall of about 3,800 of its robotaxis to fix software issues that could allow them to drive into flooded roadways.

Waymo is recalling about 3,800 robotaxis in the U.S. to fix software issues that could allow them to “drive onto a flooded roadway,” according to a letter on the National Highway Traffic Safety Administration’s website.
The voluntary recall is for Waymo vehicles that use the company’s fifth and sixth generation automated driving systems (or ADS), the U.S. auto safety regulator said in the letter posted Tuesday.
Waymo autonomous vehicles in Austin, Texas, were seen on camera driving onto a flooded street and stalling, requiring other drivers to navigate around them. It’s the latest example of a safety-related issue for the Alphabet-owned AV unit that’s rapidly bolstering its fleet of vehicles and entering new U.S. markets.
Waymo has drawn criticism for its vehicles failing to yield to school buses in Austin, and for the performance of its vehicles during widespread power outages in San Francisco in December, when robotaxis halted in traffic, causing gridlock.
The company said in a statement on Tuesday that it’s “identified an area of improvement regarding untraversable flooded lanes specific to higher-speed roadways,” and opted to file a “voluntary software recall” with the NHTSA.
“Waymo provides over half a million trips every week in some of the most challenging driving environments across the U.S., and safety is our primary priority,” the company said.
Waymo added that it’s working on “additional software safeguards” and has put “mitigations” in place, limiting where its robotaxis operate during extreme weather, so that they avoid “areas where flash flooding might occur” in periods of intense rain.
WATCH: Waymo launches new autonomous system in Chinese-made vehicle

Technologies

Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge

Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.

Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.

Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.

The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.

The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.

Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.

Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.

Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.