EU launches investigations into tech giants under new Digital Markets Act

EU launches investigations into tech giants under new Digital Markets Act

The European Commission has launched investigations into Google owner Alphabet, Apple and Meta under the Digital Markets Act (DMA).

The non-compliance investigations announced yesterday will scrutinise Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari, and Meta’s “pay or consent model”.

Article 5(4) of the DMA requires so-called gatekeepers to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge. The Commission is concerned that Alphabet and Apple are restricting this in breach of the DMA.

Among the issues identified in the proceedings against Alphabet include whether various Google services, such as Google Shopping and Google Flights, are being given too much preference in Google search results over similar rival services.

The investigation into Apple will examine its compliance with obligations to make it easy for users to change default settings, e.g. to change the default browser or search engine on their iPhones.

The proceedings against Meta will establish whether its “pay or consent” model — whereby Facebook users who do not want to share their personal data with advertisers can pay a subscription fee instead — is compatible with the DMA.

In addition to the non-compliance investigations, the Commission has also launched investigatory steps relating to Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace.

Margrethe Vestager, the Commission’s executive vice-president in charge of competition policy, said: “Today, the Commission opens five non-compliance investigations under the Digital Markets Act.

“They concern Alphabet’s rules on steering in Google Play and self-preferencing in Google Search, Apple’s rules on steering in the App Store and on choosing browsers and changing defaults, and Meta’s ‘pay or consent model’.

“We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA. We will now investigate the companies’ compliance with the DMA, to ensure open and contestable digital markets in Europe.”

Thierry Breton, commissioner for the internal market, added: “The Digital Markets Act became applicable on 7 March.

“We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market — but we are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses.

“Should our investigation conclude that there is lack of full compliance with the DMA, gatekeepers could face heavy fines.”

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