The European Commission recently opened investigations into Apple, Meta, and Google’s parent company Alphabet to determine whether their practices comply with the new Digital Markets Act (DMA) rules aimed at curbing the power of dominant online platforms. These investigations come just days after the new rules went into effect, extending to cover large online companies. Specifically, the commission is looking into Google’s search results favoring its own products, Apple’s new app business model, and Meta’s “pay or consent” norms regarding targeted ads. The commission’s goal is to ensure open and competitive digital markets in Europe.
CCIA Europe, a trade organization representing digital platforms, expressed concern that the commission may be moving too quickly in launching these investigations, potentially politicizing the process. However, EU Industry Commissioner Thierry Breton defended the actions, stating that the companies were aware and prepared for these probes. Apple and Meta have both responded to the investigations by stating their willingness to engage with the commission and demonstrate compliance with the DMA. The executive aims to conclude the investigations within twelve months, with potential fines of up to 10% of the companies’ worldwide turnover at stake.
In addition to the investigations into Apple, Meta, and Google’s parent company Alphabet, the commission has also requested clarification regarding Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its online marketplace. The DMA designates major online services, including Amazon.com, TikTok’s owner ByteDance, and Microsoft, as gatekeepers responsible for providing an important bridge between business users and consumers. Alphabet did not immediately respond to requests for comments on the investigations.
Overall, the European Commission’s decision to launch non-compliance investigations into major online platforms like Apple, Meta, and Google’s parent company Alphabet reflects a larger effort to promote open and competitive digital markets in Europe. These investigations come shortly after the implementation of the new EU Digital Markets Act (DMA), which aims to address the dominance of online giants and ensure fair competition. Despite concerns about the speed of the investigations, both Apple and Meta have expressed willingness to engage with the commission and demonstrate compliance with the new rules. The commission aims to conclude the probes within twelve months, potentially leading to fines of up to 10% of the companies’ worldwide turnover.
In addition to the investigations into Apple, Meta, and Google’s parent company Alphabet, the commission has also sought clarification on Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its online marketplace. The DMA designates major online services as gatekeepers and aims to hold them accountable for ensuring a level playing field in the digital market. While Alphabet did not immediately respond to requests for comments, it is clear that the European Commission’s actions signal a shift towards increased regulation and oversight of dominant online platforms in Europe. Ultimately, the investigations highlight the ongoing challenges and complexities of regulating the digital economy and promoting fair competition in the online space.
