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The European Union’s antitrust regulators have initiated their first investigations under the Digital Markets Act (DMA) into tech giants Apple, Google (Alphabet), and Meta Platforms (formerly Facebook), citing potential breaches of significant EU tech regulations. This move marks a significant step in the EU’s efforts to regulate and reign in the power of Big Tech companies.
According to a statement by the EU executive reported by Reuters, the European Commission expressed concerns that the measures implemented by these companies, referred to as “gatekeepers,” may not effectively comply with their obligations under the DMA.
The investigations will focus on specific aspects of each company’s operations. Alphabet’s Google is under scrutiny for its rules regarding Google Play and potential self-preferencing practices on Google Search. Apple’s App Store rules and the choice screen for Safari are subjects of investigation related to Apple. Meanwhile, Meta’s ‘pay or consent model’ is being examined for its compliance with DMA requirements.
The Commission is particularly concerned about Meta’s ‘pay or consent model,’ expressing doubts about whether it provides a genuine alternative for users who choose not to consent, potentially leading to the accumulation of personal data by gatekeepers. Additionally, the Commission raised concerns about Google and Apple imposing restrictions and fees that hinder app developers from freely promoting their offerings.
The Digital Markets Act, a comprehensive rulebook targeting major tech gatekeeper companies providing core platform services, forms the basis of these investigations. It aims to ensure fair competition in digital markets by establishing a set of rules and guidelines for Big Tech companies. Non-compliance with the DMA could result in hefty financial penalties or even the termination of businesses in the EU.
The overarching goal of the Digital Markets Act is to create a level playing field in digital markets, making them more competitive and accessible by dismantling closed tech ecosystems maintained by dominant players.
The outcome of these investigations could have far-reaching implications for the tech industry in Europe and globally, as regulators seek to address concerns about monopolistic practices and promote a more open and competitive digital landscape.
Sources By Agencies
