European Union regulators announced on Monday that Alphabet, Apple, and Meta are under investigation for potential violations of the region’s new competition law. These inquiries are the first since the Digital Markets Act came into effect on March 7, signaling the EU’s commitment to enforcing competition rules. The law requires tech giants to open up their platforms to smaller rivals, impacting app stores, messaging services, internet search, social media, and online shopping.
In Brussels, investigations are focused on whether Apple and Alphabet are favoring their own app stores to exclude rivals, particularly restrictions on how app developers communicate with customers. Google is also being investigated for the display of search results in Europe, and Meta for a new ad-free subscription service and data usage for advertising.
The European Commission can fine these companies up to 10% of their global revenue, with a 12-month deadline for investigations. Despite some changes made by the companies, regulators believe they have not gone far enough to comply with the law. Margrethe Vestager, the European Commission’s executive vice president, emphasized the seriousness of compliance with the law.
These investigations highlight the EU’s efforts to regulate tech giants and reduce their dominance. The Digital Markets Act aims to give regulators more authority to enforce changes in business practices without lengthy antitrust lawsuits.
As part of the investigations, Alphabet, Apple, and Meta must provide more information to regulators about their business practices. The companies have implemented changes to comply with new rules, such as allowing outside app stores on Apple devices and altering search result displays on Google.
Meta’s new subscription service in the EU has raised concerns about user choices regarding ads and personal data usage. In response, companies have pledged to engage constructively with regulators and defend their approaches.
The tech industry is closely watching how the EU enforces the new competition law, as workshops and complaints from various groups continue. Regulators are also gathering information on Amazon’s compliance with the Digital Markets Act, focusing on possible favoritism towards its own products in violation of the law.
