Brussels, Belgium – The European Union has launched investigations into tech giants Apple, Alphabet, and Meta under the new Digital Markets Act legislation. This marks the EU’s first probe into these companies since the implementation of the sweeping tech legislation.
The investigations focus on various practices by Alphabet, Apple, and Meta that may violate the Digital Markets Act, which aims to prevent anti-competitive behavior in the tech industry. Alphabet is being investigated for its rules on steering in Google Play and self-preferencing on Google Search, while Apple is under scrutiny for its rules on steering in the App Store and the choice screen for Safari. Meta, formerly known as Facebook, is being investigated for its “pay or consent model.”
EU competition chief Margrethe Vestager expressed concerns during a press conference about how Apple and Alphabet have implemented the anti-steering rules, suggesting that their practices may not align with the intent of the law. Apple has already faced repercussions for violating EU rules, as evidenced by the recent 1.8 billion euro fine imposed on the company for restricting app developers from informing iOS users about alternative music subscription services.
The probes also delve into whether Alphabet’s display of Google search results leads to self-preferencing over rival services, and whether Apple is complying with obligations under the Digital Markets Act to facilitate easy uninstallation of apps and changing default settings on iOS.
In addition, the investigation into Meta’s “pay and consent” model questions whether the ad-free subscription models offered by the company are in violation of the Digital Markets Act. The EU is exploring whether Meta’s model limits user choice and fails to prevent the accumulation of personal data by gatekeepers in the tech industry.
The European Commission aims to conclude its probes within 12 months but stresses that there is no strict deadline for the inquiry. Companies found to infringe the Digital Markets Act could face fines of up to 10% of their total worldwide turnover, escalating to 20% in cases of repeated violation. The Commission is also examining Amazon’s potential preferencing of its own products on its e-commerce platform and gathering information on Apple’s new fee structure and terms for alternative app stores.
Overall, the EU’s investigations into tech giants underscore the increasing scrutiny over big tech companies’ practices in the digital market. As the probes progress, stakeholders will be closely monitoring the outcomes to ensure fair competition and consumer protection in the tech industry.