BRUSSELS – The European Union has launched investigations into tech giants Apple, Alphabet, and Meta under a groundbreaking new law aimed at curbing their market dominance. The European Commission announced on Monday that it will probe whether Apple and Alphabet have unfairly favored their own app stores, as well as Meta’s use of personal data for advertising.
These investigations mark the first application of the Digital Markets Act (DMA), which came into effect earlier this month to address the influence of large online platforms. If found in violation, the companies could face substantial fines of up to 10% of their global turnover.
EU Executive Vice-President Margrethe Vestager, responsible for digital policy, described the cases as “serious” and indicative of the DMA’s goal of promoting consumer choice. She emphasized that the issues at hand have not been resolved through discussion alone.
Under the DMA, companies are required to allow app developers to link users to services beyond their own platforms without charging fees. Additionally, platforms that provide ranked search results must treat third-party services fairly and nondiscriminatory.
The European Commission expressed concern that Apple and Alphabet have imposed restrictions and limitations that hinder developers from promoting alternative services. The Commission is also examining Google Shopping and Google Flights to determine if the search giant is prioritizing these services in its search results.
Regarding Apple, the Commission is investigating whether the company is fulfilling its obligation to allow users to easily uninstall software applications on its iOS operating systems and modify default settings, browsers, and search engines.
The Commission has initiated proceedings against Meta over the compliance of its “pay or consent” subscription model with DMA requirements. These requirements mandate gatekeepers to obtain user agreement before combining or cross-using personal data for advertising purposes.
While tech companies have pushed back against allegations of wrongdoing, Brussels aims to complete the investigations within a year, a significantly faster timeline compared to previous antitrust probes.
Apple expressed confidence in its compliance with the DMA and pledged to cooperate with the European Commission’s investigations. Amazon claimed compliance with the rules and highlighted its constructive engagement with the commission. Meta emphasized that subscriptions as an alternative to advertising are a well-established business model.
Critics have raised concerns that the timing of the investigations, while DMA compliance workshops are ongoing, could politicize the process. Daniel Friedlaender, head of CCIA Europe, a tech industry lobbying group, cautioned against confirming industry fears about political influences on DMA compliance.
The investigations into Apple, Alphabet, and Meta signal the EU’s determination to apply rigorous antitrust measures in the digital realm.