The European Union (EU) has intensified its scrutiny of potential violations of the Digital Markets Act (DMA) by major tech companies. Among the six designated “gatekeeper” firms, Apple, Alphabet (Google), Meta (Facebook), and Amazon are currently facing investigations for possible non-compliance. Any failure to adhere to the regulations could result in significant financial penalties, amounting to up to 10% of their annual turnover.
Following the submission of compliance reports by the firms, Apple and Alphabet have come under specific investigation for alleged restrictions on communication and steering. The EU is examining whether these companies inhibit businesses from freely reaching out to customers and offering them better deals outside their respective app stores, a practice known as anti-steering. Moreover, concerns have been raised about potential unnecessary fees associated with such communications.
Furthermore, Apple is being probed for reportedly making it challenging for users to delete certain apps, such as Apple Photos, and modify default settings, including preferences for cloud storage. Additionally, the EU is investigating whether Apple’s web browser, Safari, limits user choice, contributing to concerns over potential anti-competitive practices.
Separately, Google is facing scrutiny for allegedly prioritizing its own products and services in search results, potentially giving it an unfair advantage over competitors. Meanwhile, the EU is also examining whether Amazon exhibits similar favoritism towards its own products.
Meta, formerly known as Facebook, is also under investigation for its subscription service offering ad-free experiences on Facebook and Instagram. The EU argues that this model effectively presents users with a choice between paying for ad-free services or consenting to data collection for targeted advertising, potentially violating the DMA’s requirements for separate and freely given consent for data usage across different services.
The EU anticipates concluding its investigations into Apple, Alphabet, and Meta within a year. The DMA represents an effort by the EU to create fairer and more competitive digital markets by regulating gatekeepers—large digital platforms—and establishing criteria for their qualification.
Recently, in a separate legal development, US authorities filed a lawsuit against Apple, alleging anticompetitive behavior that resulted in a monopoly in the US smartphone market. Additionally, Apple was fined €1.8 billion by the EU three weeks prior for violating competition rules in the music streaming industry.
