EU scrutinizes Apple, Google, Microsoft over scams

EU puts big tech names on edge

The European Union has taken a fresh swipe at tech’s biggest names. Apple, Google, Microsoft, and Booking are being pressed to explain how they fight scams on their platforms. Regulators want to know if the safeguards these companies use are actually working.

According to the Financial Times, EU regulators have formally requested information from Apple, Google, Microsoft, and Booking Holdings under the Digital Services Act about how they are tackling financial fraud.

The move shows Europe is ramping up enforcement under its Digital Services Act.

Scams rise across the block

Online scams are costing Europeans billions every year. The EU’s tech chief Henna Virkkunen said losses have topped €4 billion annually, and the damage isn’t just financial. Victims often suffer emotional stress and lingering anxiety.

Fraud has evolved with technology. Fake apps, bogus listings, and search results trick users into giving up personal details or money. Regulators see this as a growing threat that platforms must stop before it spreads further.

Fake apps under spotlight

Apple and Google’s app stores are prime targets. Investigators will be looking at how the companies detect and block fake banking apps, which often slip through the cracks. These apps mimic real ones, fooling people into entering sensitive data.

Even with review processes in place, scammers still find loopholes. Regulators want to know if the two companies are investing enough to catch these threats early. The stakes are high, given how many people rely on mobile apps daily.

Search results face scrutiny

Google and Microsoft’s Bing are also being checked. The focus is on how scam websites rise to the top of search results. Fraudulent pages promising investments or fake services can easily trap users searching for quick answers.

This isn’t a new issue, but the EU wants harder evidence that both search giants are working to clean up their results. With AI changing how searches work, regulators fear scams could become even harder to spot.

Booking joins the hot seat

Unlike American companies, Booking.com is based in Europe. It’s being asked about how it handles fake accommodation listings. It is essential because travelers could be duped by fraudulent properties, potentially leaving them stranded or out of their money.

If a homegrown company can’t guarantee safe listings, how can global players be trusted? The case highlights how online fraud spans industries, not just social media or apps.

Why the DSA matters

At the heart of the probe is the Digital Services Act. This law gives the EU the power to demand answers from platforms about how they fight harmful and illegal content. It covers scams, disinformation, and unsafe online products.

Companies found lacking face tough penalties. The fines can reach up to six percent of their global revenue, which for giants like Apple and Google would mean billions. The law is a signal that Europe won’t let tech police itself anymore.

Previous probes set the tone

The EU has already launched investigations into other companies under the DSA. Meta’s Facebook and Instagram are under review for how they handle harmful posts. Online marketplaces like Temu and Shein are also being checked for illegal product listings.

These cases build a pattern. Each new probe expands the scope of what the DSA touches. Financial scams are simply the latest addition to a widening net of enforcement.

Global tensions simmer

This crackdown comes as U.S.-EU tensions flare over digital rules. Washington sees some of these moves as unfairly targeting American firms. Past threats of trade retaliation, including higher tariffs, have already been floated.

But EU officials stress they’re looking at company behavior, not nationality. Whether a firm is based in California or Amsterdam, the rule is the same: if they fail to keep users safe, penalties will follow.

AI makes fraud trickier

One reason scams are harder to catch is artificial intelligence. Fraudsters now use AI to create more convincing fake sites, listings, and apps. The tools make it easier to scale scams quickly and avoid detection.

The EU wants to see if platforms are adapting fast enough. The rise of generative AI means old detection methods may no longer be enough. Regulators worry the tech giants aren’t keeping pace with the criminals.

Consumer trust at risk

Scams don’t just hurt wallets. They undermine trust in digital services. If people start fearing that app stores, search engines, or booking platforms are unsafe, the entire online economy suffers.

This reputational risk is something regulators believe tech companies should take seriously. For users, one bad experience with fraud can turn them off from a service forever. The EU wants platforms to realize that prevention is also good business.

Mental toll of scams

Beyond money, scams leave emotional scars. Victims often feel embarrassed or guilty, blaming themselves for being tricked. Some report ongoing anxiety or emotional distress after losing savings or sensitive data.

Henna Virkkunen has stressed this side of the problem. Tackling scams isn’t just about financial regulation; it’s about protecting people’s well-being. This framing could push tech companies to treat the issue with more urgency.

The role of transparency

The EU’s information requests are just the start. What regulators want most is transparency, clear evidence of how platforms detect, remove, and report scams. Without this, companies risk appearing evasive.

Platforms often prefer to keep their processes secret, fearing scammers might exploit details. But for Brussels, secrecy is no longer acceptable. The message is clear: if you can’t show results, you could face fines.

Billions at stake

If found non-compliant, these companies could pay massive fines. Six percent of global turnover is no small threat. For Apple, that would mean tens of billions. Even smaller firms like Booking could face a painful financial hit.

The size of these penalties is deliberate. The EU wants companies to treat the DSA with the same seriousness as privacy laws like GDPR. Weak enforcement would make the whole law meaningless.

Could probes turn into cases?

 For now, these are only requests for information. But regulators have made clear that formal investigations are on the table. The transition from questions to full cases could happen quickly.

Companies will be judged on their responses. If they respond cooperatively and transparently, they may avoid formal investigations or further enforcement actions. But any sign of delay or neglect could push Brussels to escalate.

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What it means for users

 For everyday people, this may sound like just another regulatory battle. But the outcome matters. If companies improve their safeguards, it could mean fewer scam apps, cleaner search results, and safer booking experiences.

The EU’s goal is to make the internet less risky for consumers. If these efforts succeed, it could set a global standard for how platforms handle fraud.

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The EU is raising the pressure, and tech giants now face tough questions about scams and safety. Tell us what you think in the comments, and don’t forget to hit like.

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This slideshow was made with AI assistance and human editing.