- By Vikas Yadav
- Mon, 25 Mar 2024 08:11 PM (IST)
- Source:JND
The European Union will investigate the potential non-compliance of the Digital Markets Act (DMA) by Google, Apple and Meta. If breaches are discovered in the investigation, the tech giants could face hefty fines from the antitrust regulators. According to the official release, Google's Play Store policies and self-preferencing in Search shall be investigated. Apple's App Store rules and Safari preference and the "pay or consent model" of Meta will be investigated.
The Commission wrote that it suspects that the compliance measures of these platforms fall short of the obligations stated in the Digital Markets Act. Moreover, investigatory steps concerning Apple's fee for third-party app stores and the ranking practices of shopping platform Amazon were also launched. Parameters of Google and Apple's investigation include whether these brands impose restrictions on developers on their app marketplace.
The search giant's results will be investigated to check if it prefers services like Google Flights, Hotels and more over similar counterparts. As for Apple, the Commission will also investigate if the company complies with the obligation to uninstall software applications, modify default settings, and allow options in services like search engine, browser and more on iOS.
The #DMA has been in place for 18 days and we’ve witnessed more change from Big Tech than in the past 10 years.
— Thierry Breton (@ThierryBreton) March 25, 2024
But we want to make sure everything is done by the book 🇪🇺
Opening cases today against:
🔹Alphabet
🔹Apple
🔹Metahttps://t.co/qJ1QJO0zwO pic.twitter.com/dEfnyACJ0V
The tech giant's fee structure and policy terms for alternative stores and sideloading will also be probed. Speaking of Meta, the "pay or consent" approach's compliance will be tested with the DMA's requirement that requires consent from users if the platform plans to use the user data across other core services. Meta was also granted a six-month extension for interoperability compliance for Facebook Messenger.
Moreover, Amazon is suspected of promoting its products in its store. These proceedings are expected to conclude "within 12 months". The Commission noted: "If warranted following the investigation, the Commission will inform the concerned gatekeepers of its preliminary findings and explain the measures it is considering taking or the gatekeeper should take to effectively address the Commission's concerns."
In case of non-compliance, these companies may be fined up to 10 per cent of their global turnover. For repeated offences, the fines may steep up to 20 per cent. For "systematic infringements", the company may also oblige a gatekeeper to sell a business (or a part) or ban it from further acquisitions of additional services.