The European Union (EU) has commenced an investigation to determine whether Apple, Alphabet (Google), and Meta are in compliance with the Digital Markets Act (DMA) regulations. This marks the first such inquiry under the DMA, highlighting the EU's commitment to enforcing its digital market rules. The European Commission has expressed concerns over practices by these tech giants that may violate the DMA, including user redirection in Google Play and App Store, self-preferencing in Google Search, and Meta's "pay or consent" model.
Focused Investigations: The initial investigations will primarily target Alphabet and Apple, examining their practices around user redirection and the availability of information about cheaper alternatives or subscriptions outside their app stores. The EU's actions come in the wake of a €1.8 billion fine imposed on Apple earlier this month for hindering users' access to alternative and cheaper music subscription services.
Apple faces additional scrutiny over its compliance with DMA obligations, particularly concerning users' ability to easily uninstall apps on iOS and change default settings (like search engines). Meanwhile, Meta's introduction of an ad-free subscription model for Facebook and Instagram in Europe is under investigation to ascertain if it breaches DMA regulations. Furthermore, Meta has been given an extension of six months to make Messenger interoperable with other messaging services.
Outcome and Penalties: The Commission aims to conclude these investigations within the next 12 months. Should non-compliance be identified, it could impose fines of up to 10% of the companies' annual global revenues, or even 20% in cases of repeated violations. This investigation signifies a crucial step in the EU's efforts to ensure a competitive and fair digital market, emphasizing the importance of adhering to regulatory standards for major tech players.
