The European Union’s regulatory body has started a series of detailed investigations into whether or not tech giants Apple, Google, and Meta are following the strict rules of the Digital Markets Act (DMA). This is a big step that shows the EU’s determination to limit the power of Big Tech. Executive Vice-President Margrethe Vestager is in charge of the investigations. They want to figure out what kinds of unfair business practices may be going on in these huge tech companies.
The Commission is paying special attention to the anti-steering tools that Google and Apple use in their app stores. They want to know if these rules unfairly stop users from looking at other ways to buy things. People are also looking closely at Google’s search algorithms to see if they have any flaws that might favor its own services over competitors’.
Today we open 1st #investigations under the #DMA.
We are concerned #Alphabet, @Apple & @Meta are not meeting their obligations e.g:
👉#Apple & #Alphabet still charge recurring fees to #app #developers
👉#Meta offers no real choice for users to opt out of #data combination⬇️
— Margrethe Vestager (@vestager) March 25, 2024
The controversial “pay or consent model” for advertising targeting by Meta and Apple’s “browser choice screen” for iOS users are also being carefully looked at to see if they follow the DMA’s principles of fairness and openness. In addition, the Commission is looking into how Apple sets its prices for apps that are distributed outside of its App Store and whether Amazon treats its own goods better than others on its marketplace.
It’s not clear from what Commissioner Thierry Breton said whether Alphabet, Apple, and Meta are really trying to work with the DMA’s goal for a more fair digital landscape. The Commission is adamant: if the investigations show that these gatekeepers of the digital domain are not following the rules, they could face harsh fines of up to 10% of their annual global turnover, with the threat of a 20% penalty for repeat violations.
The beginning of March was a turning point for the chosen gatekeepers, which included Google, Apple, Meta, Amazon, Microsoft, and TikTok. They had to start following the DMA’s rules. These rules are meant to break down the walls of exclusivity that these platforms have been building for a long time. They require that switching between apps be easier, that pre-installed apps be removed, that self-preferencing be illegal, and that third-party app shops be allowed.
This EU review is a problem for Apple at the same time that it is dealing with a major antitrust investigation in the US. With the help of 16 attorneys general, the Justice Department has started legal action against the tech giant, saying that it has broken antitrust laws by making it hard for rivals to get to important hardware and software features. The legal problem is made worse by the fact that the EU just fined Apple €1.8 billion for being too rigid, which has stopped music streaming services from giving customers cheaper options.
What’s happening with this regulatory saga shows how determined the EU is to make sure there is a fair and competitive digital market that supports customer choice and creates an atmosphere where new ideas can grow without Big Tech getting in the way. As the probes go on, the Commission will be able to spell out what each gatekeeper needs to do to fix things. This will have a big impact on how the digital economy grows in the future.