The European Union is expanding its investigation of potential antitrust violations by U.S.-based technology players that are aiming to expand global business efforts. The regulators are looking into everything from privacy to taxation.
One report claims Google is facing a potential $6 billon fine and Apple's impending music venture is likely next to fall under deep European commission scrutiny. Regulators are reviewing taxation moves by the tech companies as well.
The increasing oversight and potential sanctions could put a huge curveball into the tech companies' expectations of doing business abroad.
"It's no wonder Europe is going after these companies," said Luca Schiavoni, a regulatory analyst at Ovum in London. "They are the biggest fish in the pond and have become very powerful. That inevitably means regulators are going to get involved."
The European scrutiny may seem intense as U.S. regulatory oversight is much lighter with few antitrust lawsuits and investigations coming into play though federal agencies are making increasing recommendations and policy guidelines on issues such as online data security and sharing.
However, over in Europe, the attitude regarding U.S. tech giants is much more suspicious and many countries abroad are wary regarding the impact U.S. vendors will have on their own tech industries. The EU has already sanctioned companies, including Microsoft which ended up paying $1.8 billion in fines after the commission determined the software titan had violated business competition regulations.
Right now the big spotlight is shining bright on Google, which accounts for a 90 percent share of the European online search segment. The EU is asking Google competitors, which had filed confidential complaints regarding Google's business practices, to go public with those complaints.
The news comes amidst new reports that the U.S. Federal Trade Commission had investigated Google for antitrust violations and chose not to sanction or take any action despite an internal FTC agency report that recommended such action.
The Microsoft fine reveals that the EU is very serious about its concerns and some industry watchers say if Google is found in violation of antitrust laws, it could be writing a $6.5 billion check and face restrictive actions on what it can do and not do in the EU regions.
If Google is found to have broken European antitrust rules, the financial penalties could be substantial. Officials have the power to fine Google up to 10 percent, or roughly $6.5 billion, of its most recent annual sales and to place restrictions on the company's operations in Europe. A spokesman for Google declined to comment.
"Everyone is very aware that this case has to come to some sort of conclusion," said Mario Mariniello, a researcher at the think tank Bruegel in Brussels. "The pressure is rising. They will have to come to some sort of decision soon."
Besides Apple's music streaming operation, the next tech giant to likely fall under review will be Facebook, say industry watchers, and whether the social network is making it clear to users about Facebook access to users' online data.
But the EU oversight doesn't seem to have Facebook very worried.
"We're not afraid of scrutiny," a Facebook representative said in a statement. "We have been responsive to local regulators and stand ready to respond to additional questions."
