Tech Giants Face Scrutiny for Complying with EU's Digital Markets ActEU Launches Investigations Against Apple, Google, and Meta Under DMA. Credit: techxplore.com

On Monday, the European Union launched its first investigations against major American companies Apple, Google parent Alphabet, and Meta under the new Digital Markets Act (DMA). The EU's antitrust regulator, the European Commission, expressed concerns that these companies, known as "gatekeepers", were not fully complying with their obligations under the DMA.

Since March 7, six of the largest tech companies in the world – Alphabet, Amazon, Apple, TikTok owner ByteDance, Meta, and Microsoft – have been required to adhere to the EU's landmark DMA, which aims to create a more equitable digital space by regulating the actions of these dominant players and providing users with more options.

While the EU acknowledges that some changes have been made, they believe that they do not go far enough. "We are not convinced that Alphabet, Apple, and Meta are fulfilling their obligations for a fairer and more open digital space for European citizens and businesses," said Thierry Breton, the EU's Internal Market Commissioner.

Under the DMA, the commission has the authority to impose fines of up to 10% of a company's total global turnover, with the possibility of increasing to 20% for repeat offenders. In extreme cases, the EU can even break up companies. Unlike traditional probes that can take years, the DMA requires regulators to act quickly and complete investigations within 12 months of starting.

The investigations launched on Monday focus on whether Alphabet's Google Play and Apple's App Store allow developers to show users offers outside of these app marketplaces free of charge. The commission also expressed concern that these companies may be imposing restrictions and limitations that are not in compliance with the DMA.

Alphabet is also under scrutiny for allegedly favoring its own services in Google search results, while Apple is being investigated for its app uninstallation process and the design of its web browser choice screen. Additionally, Meta faces issues with its ad-free subscriptions model, which has already faced three complaints since its launch in November. The commission is concerned that the "binary choice" for EU users may not provide a real alternative if they do not consent, which goes against the DMA's goal of preventing the accumulation of personal data by gatekeepers.

Meta has also faced legal troubles in the EU over data privacy breaches, resulting in a 1.2 billion-euro fine last year. In a separate move, regulators have ordered Alphabet, Amazon, Apple, Meta, and Microsoft to retain certain documents to ensure they are complying with their DMA obligations.

This latest announcement adds to the legal woes faced by Apple, as the company is also dealing with legal challenges in the US and EU. Last week, the US Department of Justice filed a lawsuit against Apple, accusing them of operating a monopoly in the smartphone market. This comes just weeks after the EU fined Apple 1.8 billion euros for preventing consumers from accessing cheaper music streaming subscriptions. Apple has stated that they will appeal the EU fine.

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Ann Castro carries a total of 7 years experience in the healthcare domain. She owns a Master’s of Medicine Degree. She bagged numerous awards by contributing in the medical field with her ground-breaking notions. Ann has developed her own style of working and known for accuracy in her work. She loves trekking. She visits new places whenever she gets free time.