The European Union has launched investigations into Alphabet, Apple, and Meta for potentially breaching the Digital Markets Act, which aims to prevent Big Tech from having an unfair advantage over competitors. These companies were designated as “gatekeepers” under the Act and were given six months to comply with the rules, which could result in fines of up to 10% of their global annual turnover. The EU Commission hopes to complete the probes within a year.
Two of the investigations focus on Alphabet and Apple’s payment systems and their alleged “anti-steering” behavior. This involves app developers encouraging users to make payments directly to them to avoid fees charged by Apple or Alphabet. The EU previously fined Apple $2 billion for similar behavior in the music streaming sector. The EU is now investigating whether these companies have prevented consumers from accessing offers outside their control.
Another area of investigation concerns self-preferencing, where tech companies prioritize their own products over those of rivals on online marketplaces. Google is being examined for potentially favoring its own services in search engine results, potentially limiting business for competitors like Booking.com or Skyscanner. Amazon is also being looked into for giving preference to its own products in its online store.
Under the DMA, Apple was supposed to make it easy for users to uninstall software and change default settings, but the EU is concerned this has not been implemented effectively. Meta’s “pay or be tracked” policy, which charges users who do not consent to data collection, is also under investigation for potentially not providing a real alternative for users. The EU has questioned the legality of this subscription package and Meta’s compliance with the Act’s requirements.
Google has made changes to its services ahead of the deadline and stated it will defend its approach in the coming months. Apple is confident its plan complies with the DMA, while Meta is working to comply with the Act’s guidance. The EU’s investigations aim to ensure compliance with the Digital Markets Act and prevent any unfair advantages in the tech industry.
