The European Commission, the executive arm of the 27-nation bloc, was probing Apple, Google, and Meta for their non-compliance with the Digital Markets Act, which prevents Big Tech companies from monopolizing digital markets.
The Digital Markets Act (DMA)
The Digital Markets Act, which came into full effect earlier this month, is a comprehensive set of regulations aimed at Big Tech gatekeeper companies offering core platform services, requiring them to adhere to a set of guidelines, with potential hefty fines or business breakup as consequences for non-compliance. The rules aim to make digital markets fairer and more contestable by dismantling closed tech ecosystems that restrict consumers to a single company's products or services.
European Commission Vice President Margrethe Vestager, the bloc's competition chief, stated at a press briefing in Brussels that the Commission had received complaints alleging that tech companies' efforts to comply have been inadequate, saying, "We decided to investigate a number of these suspected non-compliance issues. And as we uncover additional problems, we will address those as well."
European Commission Vice President Margrethe Vestager, the bloc's competition chief, reported at a press briefing in Brussels that the Commission has received complaints about tech companies' insufficient compliance measures, ensuring to tackle all those too.
The ruling faced immediate resistance from organizations such as the Computer & Communications Industry Association, a nonprofit representing technology and communication firms in Washington.
The group expressed concern about the timing of the announcements, suggesting that they may signal premature action by the Commission before DMA compliance workshops conclude. They warned that this approach could fuel industry apprehensions about politicizing the DMA compliance process. Companies have been instructed to retain certain documents accessible to the Commission for present and future inquiries.
Regulators are examining whether Google and Apple are adhering completely to the DMA rules. The rules mandate that tech firms enable app developers to guide users to lower-priced options outside their app stores. The Commission expressed concerns that these companies impose "various restrictions and limitations," such as recurring fees that hinder apps from freely promoting deals.
Google's Investigation
Google is under investigation for allegedly failing to adhere to DMA regulations prohibiting tech giants from favoring their services over competitors. The Commission expressed concerns that Google's actions may lead to third-party services listed on Google's search results page being treated unfairly and discriminatorily.
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Google stated that it has implemented "significant changes" to its European services to align with the DMA. Oliver Bethell, Google's director of competition, affirmed that they will persist in defending their approach in the forthcoming months.
Apple's Investigation
The Commission is also probing whether Apple is taking sufficient measures to enable iPhone users to switch web browsers readily.
Apple expressed confidence that its strategy aligns with the DMA and stated its commitment to cooperating with the European Commission during their investigations. The company highlighted the development of numerous new developer capabilities, features, and tools to adhere to the regulation.
Meta's Investigation
The European Commission is investigating Meta's offering of ad-free versions of Facebook or Instagram for European users who pay a monthly fee, allowing users to avoid utilizing their data for targeted online advertisements.
The Commission is worried that Meta's "pay or consent" model may not offer a genuine alternative if users refuse to consent, which could undermine the goal of preventing gatekeepers from accumulating personal data.
Meta stated that it will "engage constructively" with the Commission. It also emphasized that subscriptions as an alternative to advertising are a common business model and that the Subscription for No Ads feature was designed to meet various regulatory obligations, including those under the DMA.
The Commission stated its intention to conclude its investigations within 12 months.
