The EU is wasting no time in making sure Big Tech companies comply with the new Digital Markets Act (DMA) law.
On Monday, the European Commission announced The company announced that it has begun investigating violations of three companies defined as „gatekeepers“ under the new regulations: Apple, Meta, and Google's parent company Alphabet.
“Today, the European Commission launched a non-compliance investigation under the Digital Markets Act (DMA) regarding Alphabet’s rules regarding Google Play operations and self-prioritization in Google Search, as well as its App Store operations and Safari selection screen. Apple's rules and Meta's 'pay or consent model',“ the European Commission said in a statement. “The European Commission suspects that the measures taken by these gatekeepers fall short of effective compliance with their obligations under the DMA.”
Here's why the EU is investigating Meta, Apple and Alphabet
The main purpose of the DMA is to force these „gatekeeper“ companies to release their core platforms in order to stimulate competition with third parties, and all of the research focuses on how Apple, Alphabet, and Meta It is possible that there is no compliance in the field. However, the EU's investigation into these three companies is multifaceted.
Meta “Payment or Consent”
The investigation into Facebook and Instagram's parent company Meta focuses on the so-called „pay or consent“ model. Under the DMA, tech companies must obtain consent from users in the EU before sharing user data between core platforms. For example, Meta needs your permission to share your account data with Facebook in order to deliver personalized ads to you through our advertising platform.
Meta says it complies by offering EU users the option to sign up for paid subscription services on Facebook and Instagram. This allows users to have a completely ad-free experience. By not registering for the service, Mehta claims, users consent to their data being used.
“The European Commission has found that the binary choice imposed by Meta’s ‘pay or consent’ model may not provide users with a real choice if they do not consent, thereby preventing gatekeepers from accessing personal data. „We are concerned that the objective of preventing accumulation will not be achieved,“ the committee said. .
Alphabet “Personal preference”
This is very simple and has been a concern among users for a long time. The commission is investigating whether Google unfairly ranks its own products above third-party services.
An example given by the EU Commission is that Google „self-references“ its Google Shopping, Google Flights, and Google Hotels products over its competitors when searching for price comparisons and flight and hotel deals. One example is that
“The European Commission has determined that the measures taken by Alphabet to comply with the DMA ensure that third-party services listed on Google's search results pages are not subject to fair and non-discriminatory measures compared to Alphabet's own services. „We are concerned that this may not be guaranteed,“ the European Commission said. statement.
There is one interesting note towards the end of the committee's statement regarding self-preference and the fourth Big Tech company, e-commerce giant Amazon. The commission said it was taking „investigative“ steps into Amazon's own „self-preference“ regarding its own branded products and the alleged unfair preferential listing of those products on Amazon's website. Ta.
Apple and your choices
Apple received a lot coverage for that policy change In the last month, much of it has been criticism from peers over the allegations. ”malicious compliance”, the pricing structure related to the App Store and distribution of alternative iOS apps has changed.
However, the European Commission has announced that it will investigate another aspect of iOS: user choice.
The committee said it is investigating whether Apple allowed users to uninstall iOS apps, including Apple's own apps such as Safari, which currently cannot be removed from iPhone and iPad devices. The committee will also investigate whether Apple made it easy to change iOS default settings. The investigation will also include whether Apple provides consumers with adequate selection screens that offer alternatives to the default web browser and search engine.
„The European Commission is concerned that Apple's measures, including the design of its web browser selection screen, may prevent users from actually choosing services within Apple's ecosystem.“ said the commission.
And speaking of controversial app pricing, the European Commission also announced that it has launched an „investigative“ action into whether these new Apple tariffs are inconsistent with the DMA.
App store operating rules
The EU Commission is investigating possible DMA compliance issues related to Apple and Alphabet's respective mobile application stores.
App developers often pay Apple and Alphabet a large percentage of their revenue when users make purchases or sign up for subscriptions through mobile app stores. Developers have tried to avoid these fees by setting up cheaper alternatives that users can purchase. However, both Apple's App Store and Google Play have severely limited the ability of developers to „drive“ users to better offers for which they would like to collect fees.
However, under DMA, Apple and Google must allow developers to „direct“ these users elsewhere. The European Commission will now investigate whether the companies' rules impose „restrictions or restrictions“ that do not comply with regulations.
The commission said such investigations could take up to 12 months. If an investigation finds that a company has violated the DMA, the EU could impose a hefty fine of 10% of the company's global turnover. If the violation is repeated, the fine may be doubled.