The EU Initiates Investigation into Alleged Violations of Digital Markets Act by Apple, Google, and Meta

Crypto News– The European Commission has initiated a non-compliance inquiry into the practices of Apple, Meta, Amazon, and Alphabet – Google’s parent company – under the Digital Markets Act (DMA).

The EU Initiates Investigation into Alleged Violations of Digital Markets Act by Apple, Google, and Meta

According to a statement released on March 25th, the Commission suspects that the measures implemented by these major players do not effectively comply with their obligations under the DMA. Specifically, EU antitrust regulators are scrutinizing Alphabet’s rules on “steering” in the Google Play store and self-preferencing on Google Search, as well as Apple’s rules on steering in the App Store and the choice screen for Safari, along with Meta’s “pay or consent model.”

Additionally, the Commission is examining actions related to Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace.

Today, we've opened five non-compliance investigations under the Digital Markets Act.

It concerns:
Alphabet’s rules on steering in Google Play
Alphabet’s self-preferencing on Google Search
Apple’s rules on steering in the App Store
Apple's choice screen for Safari… pic.twitter.com/kiZ7sLQa8B

— European Commission (@EU_Commission) March 25, 2024

The companies have been instructed to retain specific documents to monitor the effective implementation and compliance with their obligations.

The investigation is expected to conclude within 12 months, with potential fines of up to 10% of the company’s total worldwide turnover if violations are found.

The EU’s DMA aims to establish contestable and fair markets in the digital sector, serving as a regulator for “gatekeepers” – large digital platforms with significant influence over business users and consumers, potentially creating bottlenecks in the digital economy.

According to the Commission, Alphabet, Amazon, Apple, ByteDance (TikTok’s parent company), Meta, and Microsoft are designated as the six gatekeepers under the DMA, all of which were required to fully comply with DMA requirements by March 7th.

This investigation follows a lawsuit filed by the United States Department of Justice (DOJ) on March 21st against Apple, alleging that its app market rules and alleged monopoly practices stifle competition and innovation. The lawsuit also accuses Apple of monopolizing the smartphone market and coercing developers to use its payment system to lock in both developers and users on its platform.