European Union regulators launched investigations into Apple, Google and Meta on Monday, the first cases under a sweeping new law designed to prevent Big Tech companies from cornering digital markets. The European Commission, the executive arm of the 27-nation bloc, said it was investigating the companies for “non-compliance” with the Digital Markets Act.
The Digital Markets Act that came into full effect earlier this month is a broad rulebook targeting Big Tech “gatekeeper” companies that provide “core platform services.” These companies must comply with a set of dos and don'ts, under threat of heavy financial penalties or even going out of business. The rules have the broad but vague aim of making digital markets “fairer” and “more contested” by breaking down closed technological ecosystems that lock consumers into a company's products or services.
The Commission has heard complaints that tech companies' compliance measures have failed, European Commission Vice President Margrethe Vestager, the bloc's competition chief, told a news conference in Brussels. “Today, we have decided to investigate some of these suspected non-compliance issues. And as we discover other problems, we'll address them as well.”
The companies have been ordered to retain certain documents that the Commission can access in current and future investigations, he said.
Regulators are looking into whether Google and Apple fully comply with DMA rules that require tech companies to allow app developers to direct users to cheaper options available outside their app stores. The commission said it was concerned that the two companies were imposing “various limitations and restrictions,” including charging recurring fees that prevent apps from freely promoting offers.
Google is also facing scrutiny for non-compliance with DMA provisions that prevent tech giants from favoring their own services over rivals. The committee said it was concerned that Google's measures would result in third-party services listed on Google's search results page not being treated “fairly and impartially”.
Google said it has made “significant changes” to how its services operate in Europe to comply with the DMA. “We will continue to defend our approach in the coming months,” Google competition director Oliver Bethell said.
The committee is also investigating whether Apple is doing enough to allow iPhone users to easily switch web browsers.
Apple said it is confident its design complies with the DMA and will “continue to engage constructively with the European Commission as they conduct their investigations.” The company said it has built a wide range of new capabilities, features and tools for developers to comply with the regulation.
The Commission is also considering Meta's option for European users to pay a monthly fee for ad-free versions of Facebook or Instagram to avoid having their personal data used to target online ads. “The Commission is concerned that the binary choice imposed by Meta's 'pay or consent' model may not provide a real alternative in the event that users do not consent, thereby failing to achieve the objective of preventing custodians from accumulating personal data “, he said.
Meta said he would “cooperate constructively” with the Commission. “Subscriptions as an alternative to advertising is an established business model in many industries, and we designed Ad-Free Subscription to address many overlapping regulatory obligations, including the DMA,” it said in a prepared statement.
The commission said it intends to complete its investigations within 12 months.
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