EU to Probe Apple, Meta and Google Over Potential Breaches of New Digital Markets Act
Quote from VATcal on 25/03/2024, 19:50The European Union (EU) is launching investigations into tech giants Apple, Google's Alphabet, and Meta Platforms for potentially breaching the bloc's new Digital Markets Act (DMA). Introduced in March 2024, the DMA aims to create a fairer digital marketplace by promoting user choice and fostering competition.
The EU alleges that these companies' practices may not fully comply with the DMA's regulations. Here's a breakdown of the specific areas under investigation:
App Store Steering and Safari Choice Screen (Apple): The EU will examine whether Apple's rules within the App Store and the choice screen presented on Safari browsers sufficiently encourage users to explore options beyond Apple's own services.
Google Play Steering and Search Self-Preferencing (Google): The probe will focus on Google Play's rules that may limit users' ability to discover and choose app stores other than Google Play. Additionally, the EU will investigate whether Google prioritizes its own services within search results, potentially stifling competition.
Meta's "Pay or Consent" Model: The EU will assess whether Meta's model, which offers users a choice between personalised ads or paying a subscription fee, provides a genuine free alternative that complies with the DMA.
These investigations mark the first enforcement actions under the DMA. If found to be in breach, the companies could face hefty fines of up to 10% of their global turnover.
Thierry Breton, the EU's Commissioner for the Internal Market, emphasized the importance of user choice. He specifically mentioned Meta, stating that the company should offer a free option that doesn't compromise user privacy, following criticism surrounding their subscription service launch.
The DMA signifies a significant shift in how the EU regulates big tech companies. The outcome of these investigations will be closely watched, as it sets a precedent for future enforcement actions and paves the way for a more competitive digital landscape within the European Union.
The European Union (EU) is launching investigations into tech giants Apple, Google's Alphabet, and Meta Platforms for potentially breaching the bloc's new Digital Markets Act (DMA). Introduced in March 2024, the DMA aims to create a fairer digital marketplace by promoting user choice and fostering competition.
The EU alleges that these companies' practices may not fully comply with the DMA's regulations. Here's a breakdown of the specific areas under investigation:
-
App Store Steering and Safari Choice Screen (Apple): The EU will examine whether Apple's rules within the App Store and the choice screen presented on Safari browsers sufficiently encourage users to explore options beyond Apple's own services.
-
Google Play Steering and Search Self-Preferencing (Google): The probe will focus on Google Play's rules that may limit users' ability to discover and choose app stores other than Google Play. Additionally, the EU will investigate whether Google prioritizes its own services within search results, potentially stifling competition.
-
Meta's "Pay or Consent" Model: The EU will assess whether Meta's model, which offers users a choice between personalised ads or paying a subscription fee, provides a genuine free alternative that complies with the DMA.
These investigations mark the first enforcement actions under the DMA. If found to be in breach, the companies could face hefty fines of up to 10% of their global turnover.
Thierry Breton, the EU's Commissioner for the Internal Market, emphasized the importance of user choice. He specifically mentioned Meta, stating that the company should offer a free option that doesn't compromise user privacy, following criticism surrounding their subscription service launch.
The DMA signifies a significant shift in how the EU regulates big tech companies. The outcome of these investigations will be closely watched, as it sets a precedent for future enforcement actions and paves the way for a more competitive digital landscape within the European Union.
