Antitrust Probe Underway
European Union regulators have initiated investigations into tech giants Apple, Google, and Meta, marking the first cases under a new law aimed at preventing Big Tech companies from dominating digital markets. The European Commission disclosed that these companies are being scrutinized for potential “non-compliance” with the Digital Markets Act, which came into effect recently.
Focus on Market Fairness
The Digital Markets Act targets major tech companies acting as “gatekeepers” in providing fundamental platform services. These companies must adhere to a set of regulations to ensure fair competition in digital markets, with severe penalties for violations or potential business dismantling.
The European Commission expressed concerns about Google and Apple potentially breaching rules that require them to allow app developers to direct users to external offers outside their app stores. It also highlighted issues regarding restrictions and fees hindering app promotions and favoritism towards their own services over competitors.
Response from Google and Apple
Google asserts that significant changes have been implemented to comply with the Digital Markets Act, emphasizing its commitment to defending its approach. Apple, on the other hand, remains confident that its strategies align with the regulation and pledges to cooperate with the investigations.
Meta’s Involvement
Additionally, Meta is facing scrutiny over offering users the choice to pay for ad-free versions of Facebook or Instagram to avoid targeted advertising. The European Commission is investigating whether this model truly provides an alternative for users who decline consent.
Meta has defended its subscription model as compliant with regulations and stated its intention to engage constructively with the Commission throughout the process.