NewsEU probes Big Tech over DMA violations: Alphabet, Apple, and Meta under scrutiny
EU probes Big Tech over DMA violations: Alphabet, Apple, and Meta under scrutiny
The European Commission launched on Monday five investigations against digital giants Alphabet, Apple, and Meta over potential breaches of competition rules specified in the Digital Markets Act (DMA). Marking the first use of the DMA for such proceedings.
ed. KKG
25 March 2024 15:22
The investigations revolve around Alphabet, the conglomerate behind Google, and its alleged prioritization of its services in search results, notably in comparisons of hotel rates, flight fares, and other consumer items available online.
Google previously faced a £2.1 billion fine in 2017, yet the European authorities deemed the remedial actions inadequate.
Additionally, the EC is scrutinizing the restrictive policies Alphabet and Apple employ in their digital stores, Google Play and the App Store. These policies are said to hinder app developers' ability to promote their products freely, conduct direct transactions with users, and, by imposing various charges, limit their operational freedoms.
A separate inquiry into Apple will assess if it breaches regulations by making it difficult for iPhone owners to remove pre-installed apps. There's a concern that Apple may be restricting the use of web browsers other than its native Safari on iOS devices.
Consent necessary for data sharing
Meta, the parent company of Facebook and Instagram, is under investigation for possibly not securing adequate user consent before using their personal data for advertising purposes. While Meta offered a paid subscription model to users preferring not to receive targeted ads, the European Commission is critiquing Meta's 'consent or payment' approach, suggesting it does not provide a genuine choice for those opposed to data sharing.
Significant fines for "gatekeepers"
"We have doubts about the adequacy of the solutions proposed by these three corporations in adhering to the DMA. We will now ascertain their compliance to safeguard competitive and open digital markets in Europe," Margrethe Vestager, Deputy Head of the EC and competition policy overseer, commented.
Echoing her sentiment, Thierry Breton, EU Commissioner for the Internal Market, remarked, "We are not persuaded that the approaches taken by Alphabet, Apple, and Meta align with their commitments to establishing a more equitable and transparent digital environment for European citizens and businesses. Should our investigation reveal total non-compliance with the DMA, 'gatekeepers' might face hefty penalties."
