The EU has declared an inquiry into several of the world’s largest technology companies for engaging in anticompetitive business practices.
IN SHORT
EU Investigates Tech Firms Over Uncompetitive Practices
- The European Commission is opening five non-compliance investigations into Apple, Google, and Meta’s compliance with the Digital Markets Act (DMA).
- The investigation aims to determine if the proposed solutions by the companies do not fully comply with the DMA.
- The investigation will focus on Google and Apple’s anti-steering rules in their app stores, Google’s self-preferencing of its own services, Apple’s browser choice screen for iOS, and Meta’s “pay or consent model” for ad targeting.
- We expect the investigations to conclude within the next 12 months.
- The Commission is also investigating Apple’s fee structure for distributing apps outside of the App Store and whether Amazon is self-preferencing its own products.
- Meta has given itself an extra six months to integrate Messenger with other messaging services.
- If found not to be in compliance, the Commission can fine each company up to 10% of their annual global revenue under the DMA.
- The announcement follows criticism of Apple’s compliance with the DMA, with Spotify calling it a “complete and total farce” and Epic CEO Tim Sweeney calling it a new instance of Malicious Compliance.
The European Commission is opening five non-compliance investigations into Apple, Google, and Meta’s compliance with its new Digital Markets Act antitrust rules. The regulator suspects that the proposed solutions by the three companies do not fully comply with the Digital Markets Act (DMA).
The investigation will focus on Google and Apple‘s anti-steering rules in their app stores, whether Google is guilty of self-preferencing its own services within its search engine, Apple’s browser choice screen for iOS, and Meta’s “pay or consent model” for ad targeting. The Commission plans to conclude the investigations within the next 12 months.
The Commission is also looking into the fee structure Apple announced for distributing apps outside of the App Store, as well as whether Amazon is self-preferencing its own products on its store. The Commission has granted Meta an extra six months to ensure Messenger’s interoperability with other messaging services.
EU Commissioner Thierry Breton stated that they 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. If the investigation concludes that there is lack of full compliance with the DMA, gatekeepers could face heavy fines.
Each gatekeeper will receive instructions from the Commission on how to address concerns and the measures the regulator plans to take. If found not to be in compliance, the Commission can fine each company up to 10 percent of their annual global revenue under the DMA, or even 20 percent in cases of “repeated infringement.”