- The European Commission is probing Apple, Google, and Meta for possibly violating the Digital Markets Act, focusing on practices within app stores, search engines, browser choices, and advertising models. Officials express a need for compliance to ensure Europe’s digital markets remain open and competitive.
- Investigations also target Apple’s new app distribution fees and Amazon’s product favoritism. Meta has extra time to integrate Messenger with other services. Companies face fines up to 20% of global revenue for repeat violations.
- Apple’s compliance is under scrutiny, especially its fee structure for alternative app stores on iOS, which critics say could inhibit developers from using platforms other than Apple’s App Store, potentially limiting the Digital Markets Act’s intended benefits.
The European Commission is initiating investigations into five instances of potential non-compliance by Apple, Google, and Meta under its new Digital Markets Act (DMA) antitrust regulations, as confirmed by the authority today.
What’s happening behind the scenes?
“We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA. We will now investigate the companies’ compliance with the DMA, to ensure open and contestable digital markets in Europe,” stated Margrethe Vestager, the European Union’s antitrust chief.
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
Specific areas of scrutiny include the examination of Google and Apple’s restrictions against directing users to payment methods outside of their app stores, and the investigation into whether Google unfairly prioritizes its own services in its search results. The investigation will also cover Apple’s method for offering browser choices on iOS, alongside Meta’s advertising targeting model that requires user payment or consent. During a media briefing, the Commission indicated its intention to complete these investigative processes within the coming year.
Furthermore, the European regulatory body is scrutinizing Apple’s proposed fees for app distribution outside its official App Store, and is investigating whether Amazon is giving unfair advantage to its own products on its platform. Additionally, it has been disclosed that Meta has received a six-month extension to ensure its Messenger service can operate with other messaging platforms.
“We are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses. Should our investigation conclude that there is lack of full compliance with the DMA, gatekeepers could face heavy fines,” EU Commissioner Thierry Breton remarked.
After the investigations, the Commission plans to inform each implicated party of the necessary corrective actions to resolve any issues, along with the specific steps the Commission intends to implement. In instances of non-compliance, the involved companies could incur penalties amounting to up to 10 percent of their global yearly revenue, as per the DMA regulations, or even up to 20 percent for repeated offenses.
This month marked the commencement of compliance requirements under the DMA for the six leading technology firms identified as gatekeepers. Obligations now include allowing users to switch default applications and remove pre-installed software of the gatekeepers, prohibiting the preferential display of their own services over competitors, and facilitating the use of third-party app marketplaces.
Margrethe Vestager, the EU’s head of competition, previously conveyed to Reuters the Commission’s intent to meticulously assess Apple’s adherence to the regulations amid apprehensions that the company may, in practice, deter the utilization of the DMA’s advantages.
This statement comes in the wake of intense scrutiny directed at Apple’s compliance with the Digital Markets Act. While the firm has begun to permit alternative app stores on its iOS platform, in line with the new mandates, it has introduced a revised fee model. Critics argue that this change is likely to deter developers from offering their applications through channels other than the Apple App Store.
Image credits: Kerem Gülen/Midjourney
