EU launches first Digital Markets Act probes targeting Apple, Google and Meta

EU antitrust regulators have initiated investigations targeting tech giants Apple, Google and Meta Platforms for potential breaches of the Digital Markets Act, marking the European Union's first probes under the new legislation.

The law, which came into effect on March 7, mandates six gatekeepers, including companies providing services like search engines, social networks and chat apps used by other businesses, to adhere to guidelines ensuring a level playing field for competitors and providing users with more options.

According to the European Commission, violations of the Digital Markets Act could result in fines of up to 10% of the companies' global annual turnover.

The Commission suspects that measures implemented by these gatekeepers may not effectively comply with the requirements of the act.

The EU competition enforcer will investigate Alphabet's rules concerning steering in Google Play and self-preferencing on Google Search, Apple's regulations on steering in the App Store and the choice screen for Safari, and Meta's 'pay or consent model'.

'The law is the law'

Addressing concerns about the pace of the investigations, EU industry chief Thierry Breton said the investigations should not be a surprise.

He noted that Meta's introduction of a no-ads subscription service in Europe, which has drawn criticism from rivals and users, should offer free alternative options, similar to recent moves by Google and Apple.

In response to the probes, a Meta spokesperson stated the company's commitment to complying with the act's guidelines, citing the Subscription for No Ads service as an effort to address regulatory obligations.

Google affirmed its intention to defend its approach, highlighting significant changes made to its services, while Apple expressed confidence in its compliance with the Digital Markets Act.

The Commission also disclosed plans to investigate Apple's new fee structure for alternative app stores and Amazon's ranking practices on its marketplace.

Intending to conclude the investigations within a year, the EU executive has instructed the companies to retain specific documents to facilitate ongoing and future probes.

These EU investigations coincide with mounting criticism from app developers and business users regarding perceived deficiencies in the companies' compliance efforts.

Source: Newsroom