The European Union (EU) has initiated investigations against major tech players Apple, Google's parent company Alphabet, and Meta, marking the first-ever probes under the sweeping Digital Markets Act (DMA). These inquiries, the first of their kind under the new legislation, could potentially result in substantial fines against the US tech behemoths.
Named as market "gatekeepers" alongside Amazon, TikTok owner ByteDance, and Microsoft, the three companies have been under scrutiny since the DMA came into effect on March 7. The EU's internal market commissioner, Thierry Breton, expressed skepticism regarding the companies' compliance with obligations to foster a fairer digital environment for European citizens and businesses.
The European Commission, the EU's antitrust regulator, suspects that measures implemented by Alphabet, Apple, and Meta thus far may not fully meet the requirements for effective compliance. Despite assertions from tech lobbying groups critiquing the probes for being premature, EU officials maintain that investigations were conducted diligently.
Under the DMA, fines of up to 10 percent of a company's global turnover can be imposed, with the possibility of increased penalties for repeat offenders. Additionally, the EU retains the authority to mandate the breakup of companies under extreme circumstances.
The probes are primarily focused on examining whether Google Play and Apple's App Store allow app developers to display offers outside of their platforms, free of charge. Concerns also center around whether Google's search results prioritize its own services over competitors', echoing previous antitrust actions against the tech giant.
Apple faces scrutiny over app uninstallation accessibility on its iOS operating system and the design of web browser choice screens. Meta's ad-free subscriptions model has also drawn attention, with officials questioning the nature of user consent and its compliance with regulatory obligations.
Amazon's potential favoritism towards its own brand products on the Amazon Store and Apple's new fee structure for alternative app stores will also be examined by EU regulators.
These investigations represent a further challenge for Apple, already contending with legal battles on both sides of the Atlantic. The recent probes by the EU add to a series of regulatory hurdles confronting tech giants, signaling a renewed focus on ensuring competition and consumer protection in the digital marketplace.
More: https://techxplore.com/news/2024-03-eu-probes-apple-google-meta.html
