apple-google-meta-targeted-in-eu-s-first-digital-markets-act-probes

The European Union has initiated investigations into Apple, Google, and Meta for potential violations of the newly enacted Digital Markets Act. The law, which came into effect on March 7, aims to address concerns regarding the dominance of big tech companies and foster fair competition in the digital landscape.

 

The European Commission, responsible for enforcing antitrust regulations, announced on Monday that it will be scrutinizing Apple, Alphabet's Google, and Meta Platforms for potential breaches of the Digital Markets Act (DMA). The investigations could potentially lead to substantial fines for the companies, with penalties of up to 10% of their global annual turnover.

 

The DMA seeks to challenge the supremacy of tech giants by facilitating greater user mobility between competing online services, including social media platforms, internet browsers, and app stores. By doing so, it aims to create space for smaller businesses to thrive and compete on a more level playing field.

 

One of the key focuses of the investigation is whether Apple complies with the DMA's obligations, such as enabling users to easily uninstall software applications on its iOS operating system and providing options to change default settings or access alternative browsers and search engines on iPhones. Additionally, regulators are examining concerns related to "steering," whereby Apple may be imposing restrictions hindering app developers from informing users about offers outside its App Store.

 

Responding to inquiries, Apple expressed confidence in its compliance with the DMA, highlighting its responsiveness to feedback from the Commission and developers. 

 

The Commission raised concerns about fee structures implemented by both Apple and Alphabet, which it believes contradict the DMA's requirement of providing certain services "free of charge." This includes recent fee introductions for some services by both companies.

 

Meta, formerly known as Facebook, also faces scrutiny, especially regarding its introduction of a subscription-based service in Europe aimed at providing an ad-free experience. While Meta maintains that it's striving to comply with the DMA, regulators assert that alternatives to paid subscriptions should be offered.

 

Meanwhile, Google stated that it has made significant changes to its services and intends to defend its approach in the coming months.

 

Apart from these tech giants, the Commission is also investigating other players like Amazon for their fee structures and ranking practices. Amazon, however, claims compliance with the DMA and asserts its ongoing efforts to meet regulatory standards in Europe.

 

The EU executive aims to conclude the investigations within a year, as outlined under the DMA. Companies involved are required to retain certain documents to facilitate ongoing and future probes.