The European Commission has officially launched a series of investigations into Apple, Google, and Meta, aiming to scrutinize their compliance with the Digital Markets Act (DMA), a set of new antitrust regulations designed to ensure fair competition in the digital market.
EU antitrust chief Margrethe Vestager has raised concerns that the measures proposed by these tech giants may not sufficiently align with the DMA’s requirements, thus necessitating a detailed examination.
Key Areas of Investigations
The Commission intends to complete these investigations within the next 12 months, focusing on several key areas including:
- Google and Apple’s app store practices
- Google’s potential bias towards its own services in search results
- Apple’s choices for iOS browser options
- Meta’s advertising consent strategy, and
- the newly implemented app distribution fee structure by Apple.
The European regulator is also investigating whether Amazon has been favoring its own products on its platform. Additionally, it was revealed that Meta has been granted an extra six months to ensure its messaging service, Messenger, can operate with other messaging platforms, highlighting the EU’s push for interoperability among digital services.
EU Commissioner Thierry Breton underscored the importance of these investigations by stating the necessity for solutions that truly reflect the DMA’s objectives of creating a fairer and more open digital space for Europeans.
Companies found not in compliance might face severe financial penalties, including fines up to 10% of their annual global revenue, which could escalate to 20% for repeated infractions.
Responses from Major Tech Companies
The backdrop of these investigations is the designation of six major tech entities as “gatekeepers” under the DMA, a label that comes with stringent rules aimed at leveling the playing field in the digital domain. These rules require changes in how companies operate, including permitting users to uninstall pre-installed apps and preventing the prioritization of their own services over competitors’.
This comes amidst vocal criticisms from industry participants, notably Spotify and Epic Games, about the perceived inadequacy of Apple’s efforts to comply with these new regulations, with some accusing Apple of engaging in “Malicious Compliance.”
Meta has attempted to adjust its model by introducing a paid subscription option for ad-free usage of its services in the EU, in response to regulatory pressures and criticisms of its “pay or consent model” for ad targeting. This model presents users with the choice between consenting to data collection for personalized ads or paying for an ad-free experience, a scheme that the Commission is examining closely.
In defense of their positions, spokespeople from Apple, Meta, Google, and Amazon have each asserted their companies’ commitment to complying with the DMA, detailing the efforts and adjustments made to align with the new regulations. These statements reflect a unified front of willingness to engage with the European Commission to address and resolve any concerns related to compliance with the DMA.
Related News:
Featured Image courtesy of DonanımHaber