Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
EU Initiates Investigation into Tech Companies Apple, Google, Meta, and Amazon for Breaches of Digital Markets Act
The European Commission initiated a comprehensive investigation aimed at Apple, Amazon, Alphabet, and Meta regarding non-compliance with the new Digital Markets Act (DMA) on March 25.
This commission inquiry marks the EU’s initial significant effort to address anti-competitive behaviors by major tech firms identified as “gatekeepers” by the commission.
EU Focuses on Apple, Google, Meta Practices
As per the announcement, the European Commission has launched five distinct investigations to examine the business practices of Apple, Google, and Meta, which may breach the DMA regulations concerning fair competition.
Today, we’ve opened five non-compliance investigations under the Digital Markets Act.
It concerns:
Alphabet’s rules on steering in Google Play
Alphabet’s self-preferencing on Google Search
Apple’s rules on steering in the App StoreApple’s choice screen for Safari… pic.twitter.com/kiZ7sLQa8B
— European Commission (@EU_Commission) March 25, 2024
The investigation will focus on Alphabet (Google’s parent company) and Apple’s restrictive “anti-steering” policies. These regulations prevent tech companies from prohibiting businesses from offering less expensive purchasing options outside their app stores.
“Today, the Commission has opened non-compliance investigations under the Digital Markets Act (DMA) into Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari and Meta’s ‘pay or consent model,” the commission clarified.
Additionally, an investigation has begun into Apple’s user preferences. This inquiry aims to determine if Apple has fully permitted its users to uninstall its default applications and modify default settings for services such as web browsers on iOS devices.
Alphabet is also under scrutiny for potential non-compliance regarding allegations of abusing its dominance in search engine recommendations for users.
The inquiry seeks to ensure that Google does not exclusively recommend its specialized Google Shopping data to users over other similar search results from competitors.
Related Posts
The final investigation will involve the EU examining Meta’s “pay or consent” model for Facebook and Instagram. This policy mandates users to either pay for a subscription for an ad-free experience or agree to data tracking on the free version.
Strict Enforcement of the Digital Markets Act (DMA)
The DMA was introduced in November 2022 and became fully effective on March 7, 2024. It was designed to promote fair competition in digital markets, which have long been dominated by major tech companies.
EU Commissioner for Competition Margrethe Vestager has indicated that, despite the implementation of the market law in 2022, tech companies “appear to be at odds with the DMA’s intent.”
She cautioned that any entity found guilty of violating the tech law could face a potential fine of up to 10% of the company’s global revenue, with 20% for repeated violations.
Currently, Apple appears to be the first company to be penalized for its anti-steering practices by the EU.
The EU imposed a fine of $1.95 billion on the iPhone manufacturer earlier this month for restricting app developers from suggesting more affordable music subscription services to iOS users.
The company was also accused of providing “higher fees” and a less secure and unresponsive user experience. This occurred prior to the US Department of Justice (DOJ) filing a lawsuit against Apple regarding unfair rules targeting crypto applications.
Conversely, Alphabet has maintained that it is operating in compliance with digital regulations. This follows a statement from Alphabet Director of Competition Oliver Bethell, asserting that the tech company has made “significant changes” to its operations in Europe.
The EU investigation is anticipated to conclude within 12 months, which will provide insights into whether the tech giants have facilitated a more equitable digital market or made adjustments that primarily benefit their operations.
The post EU Launches Probe into Tech Giants Apple, Google, Meta, and Amazon Over Digital Markets Act Violations appeared first on Cryptonews.
