Digital Markets Act: EU Commission opens proceedings against Apple, Meta and Google

The EU Commission has opened competition proceedings against Google parent company Alphabet, iPhone manufacturer Apple and Facebook parent company Meta. The EU Commission said the three US technology companies had not met the requirements.

Specifically, it concerns requirements from the new law for digital markets, the Digital Markets Act. With the law, the EU wants to limit the market power of digital companies – if they violate it, they face fines worth billions.

Since the law came into force at the beginning of March, companies have already announced changes, said EU Digital Commissioner Thierry Breton. “However, we are not convinced that the solutions proposed by Alphabet, Apple and Meta meet their commitments,” Breton said. The Commission has been in discussions with companies “for months” to help them adapt to the new rules.

Market power should also be restricted in app stores

Among other things, it is being investigated whether Alphabet is gaining an unfair competitive advantage in the Google search engine results list through its own services such as Google Maps or Google Shopping. In the case of Apple, the Commission raised concerns because iPhone users sometimes cannot delete pre-installed apps and cannot change some default settings on their cell phones.

Alphabet and Apple are also accused of indirectly forcing app developers to use their in-house app stores. On cell phones with the Alphabet operating system Android this is the Google Play Store; on iPhones, Apple’s App Store is preinstalled. According to the allegations, the companies prevent other providers from providing information about prices or concluding contracts without using the respective app store.

The investigation into the Meta Group is about a much-criticized payment model for the Facebook and Instagram platforms. Users can pay a monthly fee of at least 9.99 euros if they no longer want to see advertising. Only those who accept personalized ads can continue to use the platforms for free. The EU Commission suspects that users are indirectly forced to pass on their data.

The EU Commission wants to complete the process within a year

With the Digital Markets Act, the European Union wants to limit the market power of so-called gatekeepers of the Internet. The basic assumption is that some of the large platform operators have become so powerful that they can cement their market position. The new rules have been in effect since the beginning of March for Alphabet, Amazon, Apple, TikTok parent company ByteDance, Meta and Microsoft.

The commission wants to complete the proceedings it has opened within a year. Depending on the outcome, the affected companies must take measures to address the authority’s concerns. Anyone who does not comply with the law can be punished with a fine of up to ten percent of their total worldwide turnover. For repeat offenders, 20 percent is possible.

The EU Commission has opened competition proceedings against Google parent company Alphabet, iPhone manufacturer Apple and Facebook parent company Meta. The EU Commission said the three US technology companies had not met the requirements.

Specifically, it concerns requirements from the new law for digital markets, the Digital Markets Act. With the law, the EU wants to limit the market power of digital companies – if they violate it, they face fines worth billions.

Since the law came into force at the beginning of March, companies have already announced changes, said EU Digital Commissioner Thierry Breton. “However, we are not convinced that the solutions proposed by Alphabet, Apple and Meta meet their commitments,” Breton said. The Commission has been in discussions with companies “for months” to help them adapt to the new rules.

SOURCE