The European Union has initiated investigations into Apple, Google, and Meta Platforms regarding potential violations of the newly enacted Digital Markets Act. This legislation aims to address the dominance of major tech companies and foster fair competition for smaller businesses within the digital sphere. If found guilty, these tech giants could face substantial fines, with penalties of up to 10% of their global annual turnover. US regulators are also intensifying scrutiny over alleged anti-competitive practices, signaling potential structural changes in these companies.
Under the Digital Markets Act, companies like Apple are under scrutiny for practices such as making it difficult for users to uninstall software on iOS devices, altering default settings, and restricting access to alternative browsers or search engines. Similarly, concerns about “steering” focus on whether Apple and Alphabet (Google’s parent company) prioritize their own services over competitors’ offerings. Additionally, the Commission is examining fee structures imposed by Apple and Alphabet, emphasizing the Act’s requirement for certain services to be provided free of charge.
Meta Platforms, formerly known as Facebook, is facing scrutiny over its subscription-based service in Europe, with regulators urging the company to offer free alternatives. Despite assertions from Meta and Google that they are striving to comply with the Digital Markets Act, the EU Commission is proceeding with investigations into their practices. Amazon, Microsoft, and ByteDance, the parent company of TikTok, are also designated as “gatekeepers” under the Act, with Amazon asserting compliance and ongoing engagement with EU regulators.
The investigations come amid mounting criticism from app developers and business users regarding perceived inadequacies in the companies’ compliance efforts. The EU aims to conclude these probes within a year, as stipulated by the Digital Markets Act, and has instructed the companies to preserve relevant documents for ongoing and future investigations.
