European Union regulators opened investigations into Apple, Google and
Meta yesterday, the first cases under a sweeping new law designed to
stop Big Tech companies from cornering digital markets.
The European Commission, the 27-nation bloc's executive arm, said it was
investigating the companies for "non-compliance" with the Digital
Markets Act (DMA).
The DMA, which took full effect earlier this month, is a broad rulebook
that targets Big Tech "gatekeeper" companies providing "core platform
services".
Those companies must comply with a set of dos and don'ts, under threat
of hefty financial penalties or even breaking up businesses. The rules
have a broad but vague aim of making digital markets "fairer" and "more
contestable" by breaking up closed tech ecosystems that lock consumers
into one company's products or services.
The commission has heard complaints that tech companies' measures to
comply have fallen short, European Commission Vice President Margrethe
Vestager, the bloc's competition chief, said at a press briefing in
Brussels.
"Today, we decided to investigate a number of these suspected
non-compliance issues. And as we unearth other problems, we will tackle
those too."
The companies have been ordered to hold on to certain documents that the
commission can access in current and future investigations, she said.
Regulators are looking into whether Google and Apple are fully complying
with the DMA's rules requiring tech companies to allow app developers to
direct users to cheaper options outside their app stores.
The commission said it is concerned the two companies are imposing
"various restrictions and limitations", including charging recurring
fees that prevent apps from freely promoting offers.
Google is also facing scrutiny for not complying with DMA provisions
that prevent tech giants from giving preference to their own services.
The commission said it is concerned Google's measures will result in
third-party services listed on Google's search results page not being
treated "in a fair and non-discriminatory manner".
Google said it has made "significant changes" to the way its services
operate in Europe to comply with the DMA.
The commission is also investigating if Apple is doing enough to allow
iPhone users to easily change web browsers.
Apple said it is confident that its plan complies with the DMA, and it
will "continue to constructively engage with the European Commission as
they conduct their investigations". The company said it has created a
wide range of new developer capabilities, features, and tools to comply
with the regulation.
The commission is also looking into Meta's option for European users to
pay a monthly fee for ad-free versions of Facebook or Instagram, so they
can avoid having their personal data used to target them with online ads.
"The commission is concerned that the binary choice imposed by Meta's
'pay or consent' model may not provide a real alternative if users do
not consent," it said.
Meta said it will "engage constructively" with the commission.
"Subscriptions as an alternative to advertising are a well-established
business model across many industries, and we designed Subscription for
No Ads to address several overlapping regulatory obligations, including
the DMA," it said in a prepared statement.
The commission said it aims to wrap up its investigations within 12 months.
AP News
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