European Union regulators have set their sights on tech giants Apple, Google, and Meta, launching investigations into their compliance with the newly implemented Digital Markets Act (DMA). This marks the first time such probes have been initiated under this groundbreaking legislation, potentially resulting in hefty fines for the US-based companies.
In 25 March 2024, The European Commission has raised concerns about the practices of Apple, Google, and Meta, suspecting that they may not be fully adhering to the regulations outlined in the DMA. Specifically, the investigations will scrutinise whether Google Play and Apple’s App Store are allowing app developers to display offers to consumers outside of these platforms without incurring charges.
Google’s director of competition, Oliver Bethell, defended the company’s operations in Europe, highlighting significant changes made to their services to comply with regulations. However, the European Commission remains steadfast in its pursuit of ensuring fair competition in the digital marketplace.
In addition to investigating app marketplaces, the EU is also examining Google’s search results display to ascertain whether it favours its own specialised services over competitors’. Meanwhile, Apple faces scrutiny over its measures aimed at providing users with more control over their devices, including uninstalling software and choosing default settings.
One of the key provisions of the DMA requires large digital platforms, known as gatekeepers, to allow app developers the freedom to direct consumers to offers outside of dominant app stores without imposing charges. The EU has expressed concerns that Apple and Google may be limiting developers’ ability to communicate directly with users and promote offers.
European Commissioner Margrethe Vestager voiced apprehension over the tech giants’ adherence to their obligations, particularly noting ongoing charges imposed by Apple and Google on app developers. The investigations serve as a stern reminder to these companies of the importance of compliance with EU regulations aimed at fostering a fair and competitive digital environment.
As the investigations progress, the focus will be on the European Commission to guarantee that any discoveries lead to necessary measures being taken to support the principles of the DMA. With the threat of fines on the horizon, Apple, Google, and Meta need to handle these probes with meticulous regard for following regulations and being transparent in their operations.