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Apple Set to Avoid EU Fine Over Browser Options on iPhones

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Apple is expected to avoid a possible fine and an order from the European Union regarding its browser options on iPhones, following changes made to comply with the EU’s landmark Digital Markets Act (DMA), according to sources familiar with the matter. The European Commission, which launched an investigation in March 2024, is anticipated to conclude its probe early next week.

EU Investigation and Browser Design Concerns

The European Commission had raised concerns over Apple’s design of the web browser screen on iPhones, specifically questioning whether it hindered users from switching to alternative browsers or search engines. The investigation, part of the broader effort to regulate Big Tech, has focused on how Apple’s design practices might impact competition in the digital market.

Closing of Investigation and Regulatory Action

Sources indicate that the European Commission is set to close the investigation soon, with no penalties expected for Apple. This follows the company’s recent changes aimed at addressing the concerns raised under the DMA, a regulation designed to ensure fair competition in the digital market. The DMA aims to make it easier for consumers to switch between competing online services, such as browsers and app stores, while also allowing smaller rivals to have a fairer chance to compete.

Context of EU Regulations

The DMA outlines strict guidelines for Big Tech companies, with fines reaching as much as 10% of a company’s global annual sales for violations. In addition to this case, the European Commission is expected to announce fines for Apple and Meta Platforms in other separate cases involving violations of the DMA. Apple faces scrutiny over restrictions that prevent app developers from informing users about offers outside its App Store for free. Meanwhile, Meta’s case concerns its paid subscription service, which critics argue should offer free alternatives.

Broader Impact on Big Tech

This development comes amid ongoing tensions between the EU and the U.S., especially with U.S. President Donald Trump threatening tariffs against countries that impose fines on American companies. The European Commission has declined to comment on these investigations.

EU Cracks Down on Google and Apple Over Digital Market Rules

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The European Commission intensified its regulatory action against Big Tech on Wednesday, charging Google with two violations of the Digital Markets Act (DMA) and ordering Apple to open its ecosystem to competitors. The crackdown comes amid growing tensions between the EU and the U.S., with former President Donald Trump previously threatening tariffs in response to European fines on American companies.

Google’s alleged violations include restricting app developers from directing users to external offers outside the Google Play Store and prioritizing its own services—such as Google Flights, Google Shopping, and Google Hotels—over competitors in search results. The EU claims these practices hinder fair competition and consumer choice. Google defended its business model, warning that stricter regulations could reduce the quality of search results and limit investment in Android and Play services.

Apple was issued two compliance orders, requiring it to allow rival device makers seamless access to its technology and to establish clear timelines for responding to developers’ interoperability requests. Apple pushed back, arguing that these measures would slow innovation and unfairly benefit competitors who do not follow the same regulations.

Both companies face serious consequences if they fail to comply. Google, which has already been fined over €8 billion by the EU for previous antitrust violations, could face penalties of up to 10% of its global revenue. Apple may also undergo further investigations and financial sanctions if it does not meet the new regulatory demands.

Despite the regulatory pressure, shares of Alphabet and Apple rose by 1% and 1.6%, respectively, following the announcement.

Chevron Advances Plans to Develop U.S. Data Centers with Power Generation

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Chevron is moving forward with plans to develop data centers in the U.S., entering the permitting and engineering phases for multiple sites, according to a company executive. These centers will also feature the generation of electricity, primarily powered by natural gas, to meet the growing demand from data centers across the country. The energy consumption of these facilities, which are large warehouses for servers, is expected to triple in the next three years as the need for artificial intelligence and computing power intensifies.

The Big Tech industry has already begun securing power purchase agreements to meet their massive electricity demands, with some companies buying power directly from nuclear plants or signing deals with utilities to add power generation to the grid. This surge in data center demand is shaking up the U.S. power industry, with record peak demand and a rise in natural gas consumption.

Chevron, alongside ExxonMobil, announced plans last year to start power generation specifically for data centers, marking a departure from their usual focus on supplying energy for their own operations. Daniel Droog, Chevron’s Vice President of Power Solutions, stated at the CERAWeek conference in Houston that there is “high customer interest” in this new venture.

With data centers growing larger—some now requiring 50 times more power than traditional facilities—Chevron is targeting the development of power plants and data center sites with capacities around 1 gigawatt (GW), expected to be operational by 2027 or 2028. Droog emphasized that speed, reliability, and scale are central to their strategy.

The company has not revealed specific customers or the exact locations of these future data centers but indicated that southern, western, and midwestern regions are likely targets. These centers will be primarily powered by natural gas, with some sites potentially incorporating carbon capture or renewable energy sources.

Natural gas, which was previously avoided by Big Tech due to climate concerns, has now become a favored option due to its relatively low cost and availability in the U.S., the world’s largest gas producer. The company is also set to receive seven GE Vernova gas turbines by 2026, to aid in the power generation process.