Tim Cook expresses concerns to Trump over EU penalties

In a recent podcast appearance, revealed by BBC, Donald Trump revealed that he received a call from Apple CEO Tim Cook regarding the company’s financial troubles with the European Union (EU). According to Trump, Cook expressed his worries about hefty fines imposed on Apple, which included a significant €13 billion ($14 billion) tax bill ordered by the EU in September. This conversation comes as Trump campaigns for the Republican nomination in the upcoming U.S. Presidential Election.

During the episode of the PBD Podcast, Trump recounted the details of the call, stating that Cook mentioned a $15 billion fine levied by the EU, to which Trump acknowledged, “that’s a lot.” Trump continued, noting that the total financial impact included an additional $2 billion fine, bringing the total to an estimated $17-18 billion. This comes after a long-standing legal battle in which the EU’s highest court supported accusations that Ireland had granted Apple illegal tax benefits.

Cook has previously criticized the EU’s approach, describing the Commission’s findings as politically motivated and asserting that Ireland is being unfairly targeted. The EU has imposed multiple fines on Apple, including a notable €1.8 billion penalty in March for purported violations related to music streaming, which benefitted competitors like Spotify.

According to Trump, Cook voiced his frustrations about the EU’s use of antitrust fines, suggesting that the funds are utilized to support the bloc’s operations. The European Commission has clarified that antitrust penalties aim to penalize companies that violate competition laws while deterring future infractions. They emphasize that all businesses are welcome in the EU as long as they comply with established regulations.

Trump assured Cook that he would take action against the EU’s practices once re-elected, expressing his intent to protect U.S. companies from unfair treatment. As part of his campaign strategy, Trump has been engaging with notable tech leaders, including Elon Musk and Sundar Pichai, seeking to build alliances within the industry.

The EU’s regulatory environment has faced criticism from major tech companies, including Apple, which argue that new regulations could hinder innovation. The EU’s suite of laws, including the General Data Protection Regulation (GDPR), the Digital Markets Act (DMA), and the Digital Services Act, impose stringent requirements aimed at fostering competition and protecting consumers. These regulations are intended to keep powerful tech firms accountable while ensuring safer online environments for users.

Apple has raised concerns about the implications of the DMA, which mandates opening its App Store to third-party services, arguing that this could compromise user experience. Moreover, the EU’s recent Artificial Intelligence Act has added to the apprehension among tech firms regarding transparency and compliance in AI development, impacting the rollout of generative AI products in the region. Notably, Apple has indicated that its generative AI features will not be launched in the EU alongside their global rollout.