BRUSSELS: The European Union on Monday hit Apple, Google parent Alphabet and Meta with the first ever probes under the bloc’s massive digital law, Digital Markets Act (DMA), which could lead to big fines against the US giants.
These investigations mark the first-ever probes conducted under the expansive digital law and could potentially result in substantial fines for the US-based tech titans.
The European Commission, the EU’s antitrust regulator, raised concerns that the measures implemented by these companies as “gatekeepers” may not fully comply with their obligations under the DMA. The DMA aims to create a fairer digital ecosystem by regulating the behavior of major online platforms and ensuring greater choice for users.
Senior EU officials, including Thierry Breton, the EU’s internal market commissioner, expressed reservations about the actions taken by Alphabet, Apple, and Meta, stating that they may not adequately fulfill their obligations to foster a more open digital space for European citizens and businesses.
Under the provisions of the DMA, the European Commission possesses the authority to levy fines of up to 10 percent of a company’s global turnover, with the possibility of escalating penalties for repeat offenses. In severe cases, the EU also has the power to mandate the breakup of companies.
The investigations launched on Monday focus on various aspects, including concerns over restrictions and limitations imposed by Alphabet’s Google Play and Apple’s App Store on app developers. Additionally, Alphabet is under scrutiny for potential favoritism toward its own services in Google search results, while Apple faces questions regarding the ease of uninstalling apps on its iOS operating system and the design of web browser choice screens.
Meta, on the other hand, faces scrutiny over its ad-free subscriptions model and the perceived lack of alternatives for EU users, potentially hindering the DMA’s objective of preventing data accumulation by gatekeepers.
In addition to the investigations, regulators have ordered the tech giants to retain specific documents to ensure effective implementation and compliance with DMA regulations.
