In a significant move, the European Commission has commenced non-compliance investigations under the Digital Markets Act (DMA) against tech giants Alphabet, Apple, and Meta. These investigations aim to scrutinize the companies' adherence to their obligations under the DMA, amidst concerns over their market dominance and potential anti-competitive practices.
Allegations and Investigations:
The investigations focus on various aspects of the companies' conduct:
Alphabet (Google):
The Commission is assessing Alphabet's rules on steering within Google Play and potential self-preferencing on Google Search. Concerns have been raised regarding the restrictions and limitations imposed by Alphabet, hindering developers' ability to freely promote offers outside of Google's ecosystem.
Apple:
Apple is under scrutiny for its rules on steering within the App Store, the choice screen for Safari, and compliance with user choice obligations on iOS devices. The Commission is investigating whether Apple's measures prevent users from exercising genuine choice and whether the design of choice screens effectively allows users to select alternative services.
Meta (Facebook):
Meta's recently introduced "pay or consent" model for users in the EU is being investigated to ensure compliance with the requirement to obtain consent when cross-using personal data across different platform services. The Commission is concerned that the binary choice offered by Meta may not provide users with a meaningful alternative if they choose not to consent.
Additional Investigatory Steps
In addition to the primary investigations, the Commission is taking further steps to gather information and clarify certain aspects:
Investigating Amazon's ranking practices on its marketplace, specifically whether it promotes its own brand products over competitors.
Assessing Apple's new fee structure for alternative app stores and distribution practices, including the potential impact on competition and compliance with DMA obligations.
Enforcement Measures and Next Steps
The Commission has emphasized its intention to conclude the proceedings within 12 months. If violations are found, fines of up to 10% of the companies' total worldwide turnover could be imposed. Furthermore, in cases of repeated or systemic infringements, additional remedies such as divestitures or acquisition bans may be implemented.
Background and Regulatory Framework
The DMA aims to foster fair and contestable digital markets by regulating gatekeepers—large digital platforms with significant market power. Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft were designated as gatekeepers by the Commission in September 2023, with compliance deadlines set for March 7, 2024.
The initiation of formal non-compliance proceedings against Alphabet, Apple, and Meta underscores the Commission's commitment to enforcing regulatory standards and ensuring a level playing field in the digital sector. These investigations mark a significant step in addressing concerns over anti-competitive behavior and upholding consumer rights within the EU digital market.
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