The European Union (EU) antitrust regulators have initiated investigations into Apple, Google, and Meta Platforms for potential violations of the Digital Markets Act (DMA), which could lead to substantial fines for the tech giants.
The DMA, which took effect on March 7, mandates that six major platforms, including those providing search engines, social networking services, and messaging applications used by other businesses, must adhere to guidelines ensuring fair competition among their rivals and offering users greater choices. Violations of these guidelines could result in fines of up to 10% of the companies’ global annual revenue.
The European Commission suspects that the measures implemented by these platforms may fall short of the requirements outlined in the act.
The EU competition watchdog will delve into various aspects, including Alphabet’s policies concerning steering on Google Play and self-promotion on Google Search, Apple’s policies regarding steering on the App Store and the choice screen for Safari, and Meta’s ‘pay or consent model’.
EU industry chief Thierry Breton stressed the urgency of enforcing the law promptly when questioned about the timing of the investigations, emphasising that compliance cannot be delayed.
Additionally, concerns were raised about Meta’s subscription service introduced in Europe last November, with suggestions for offering free alternative options. Similar concerns were voiced regarding the new fees introduced by Google and Apple for certain services.
In response, a Meta spokesperson stated the company’s commitment to complying with the DMA’s guidance, citing their Subscription for No Ads model as a regulatory response.
Both Google and Apple defended their strategies, with Google highlighting significant changes to its services and Apple expressing confidence that its plans align with the DMA.
Furthermore, the Commission is investigating Apple’s new fee structure for alternative app stores and Amazon’s ranking practices in its marketplace.
The EU executive aims to conclude these investigations within a year, consistent with the DMA’s specified timeframe, instructing the companies to retain specific documents to facilitate ongoing and future probes.
These EU investigations come amidst increasing dissatisfaction among app developers and business users regarding perceived shortcomings in the companies’ compliance efforts.