EU Launches Antitrust Probe into Meta, Google, Apple, and Amazon, Warning of Potential 10% Annual Turnover Fines
Brussels, Monday, April 01, 2024-The European Commission announced On March 25 that it had launched antitrust investigations into Apple, Google, and Meta for potential violations of the bloc’s new Digital Markets Act (DMA). 1
The DMA, which took effect in March 2024, aims to curb the dominance of major tech companies and create a fairer digital marketplace. The Commission suspects that the practices of these companies fall short of complying with their obligations under the act.
The European Commission is expected to investigate the specific practices of each company.
For Apple, this includes scrutinizing the design of their web browser choice screen and the recently introduced fee structure for alternative app stores. EU says that these practices raise concerns that they may limit user choice and hinder competition within the Apple ecosystem.
Meanwhile, Google’s probe will examine the rules within Google Play that steer users towards its services.
Additionally, the Commission will investigate Google’s search engine practices, specifically looking into allegations that they favor the company’s products over competitors.
Additionally, investigatory steps are taken concerning Amazon’s marketplace practices and Apple’s fee structures. The Commission has issued retention orders to preserve evidence and granted Meta an extension to comply with interoperability obligations.
The DMA aims to ensure fair competition and regulation of gatekeepers in the digital sector, with key players expected to fully comply with DMA obligations.
The investigation into Meta will focus on whether Meta’s “pay or consent” model complies with the DMA’s user consent requirements regarding data usage.
This model presents users with the choice of paying for the service or allowing their personal data to be used for targeted advertising. The Commission will determine if this practice falls within the regulations of the DMA.
The Commission has not yet made any definitive pronouncements on these companies.
However, if found to be in violation, these companies could face hefty fines of up to 10% of their global annual turnover.
