The European Union initiates investigations into major tech companies to combat monopolistic practices in the digital market, enforcing the new Digital Markets Act.
The European Union has commenced investigations into leading technology companies Apple, Meta (formerly Facebook), and Alphabet (Google’s parent company), marking the first application of the new Digital Markets Act aimed at curbing Big Tech’s monopolistic tendencies. These probes are centered on examining practices such as the unfair promotion of app stores, preferential treatment in search results, and the use of personal data for targeted advertising, which could potentially restrict consumer choice and fair competition in the digital market.
According to Margrethe Vestager, the EU’s executive vice-president for digital policy, these investigations underline the EU’s commitment to ensuring an open and competitive digital environment. The Digital Markets Act mandates that tech firms should not impose limitations that would prevent users from accessing or developers from offering products outside of their platforms. It also requires fair treatment of third-party services, including in search results. Any company found violating these regulations might face fines amounting to up to 10% of their global turnover.
This initiative comes amidst a broader regulatory focus on Big Tech companies’ market dominance, with the EU leading efforts to ensure compliance with rules designed to foster competitive digital markets. Notably, these investigations follow a €1.8 billion fine levied against Apple for competition law breaches in music streaming and accusations against Apple in the United States for monopolizing the smartphone market.
The probes will delve into several concerns, including Apple and Google’s app store policies, Alphabet’s search result prioritizations, and Meta’s ad-free subscription models and data usage practices. The investigations are expected to take approximately 12 months, signaling a significant period of scrutiny for these tech giants. Apple, Meta, and Alphabet have variously articulated their intentions to comply with the investigation, emphasizing their commitment to constructive engagement.
This series of investigations reflect the EU’s broader aim to safeguard digital markets from monopolistic practices, promoting a healthier competitive landscape and protecting consumer interests in the process.
