Apple, Google, Meta On EU Antitrust Crosshair Over DMA Breaches

EU antitrust regulators announced on Monday that they would be investigating tech giants Apple, Google, and Meta Platforms for potential breaches of the Digital Markets Act. This investigation could result in substantial fines for the companies. The Digital Markets Act, which became effective on March 7, mandates six major tech companies, including Apple, Google, and Meta, to comply with guidelines aimed at fostering fair competition and providing users with more options.

Here’s the kick: Violations of this act could lead to fines of up to 10 per cent of the companies’ global annual turnover.

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Focus Points

The European Commission suspects that the measures implemented by these companies may not be in full compliance with the act. The investigation will focus on various aspects, including Alphabet’s Google Play rules on steering and self-preferencing, Apple’s App Store rules on steering, Meta’s ‘pay or consent model’, and Amazon’s ranking practices on its marketplace.

Thierry Breton, the EU industry chief, emphasised the importance of enforcing the law promptly. He stated, “The law is the law. We can’t just sit around and wait.” Breton addressed concerns about the pace of the investigations, highlighting that adherence to regulations is paramount.

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How Apple, Google, Meta Have Responded

In response to the investigation, Meta expressed its commitment to comply with the act’s guidelines, particularly regarding its Subscription for No Ads service, introduced in Europe last November, as reported by Reuters.

The Reuters report further stated that Google and Apple have defended their respective approaches, stating that they have made significant changes to their services and are confident in their compliance with the Digital Markets Act.

The EU Commission aims to conclude the investigations within a year, as outlined in the Digital Markets Act. To facilitate the process, the companies involved have been instructed to retain relevant documents for ongoing and future probes.

These investigations come amid mounting criticism from app developers and business users regarding perceived shortcomings in the companies’ compliance efforts. The outcome of the investigations could have significant implications for the tech industry and the regulatory landscape in Europe.