European Union regulators have set their sights on tech giants Alphabet, Apple, and Meta, launching investigations into potential violations of the region’s new competition law. The inquiries mark the first regulatory actions taken since the Digital Markets Act came into effect on March 7, signaling the EU’s commitment to enforcing strict competition rules in the tech industry.
Under the new law, companies like Alphabet, Apple, and Meta are required to open up their platforms to allow smaller rivals more access to their users, impacting app stores, messaging services, internet search, social media, and online shopping. The investigations in Brussels come amidst increasing regulatory scrutiny facing major tech companies, aligning with similar actions taken by the United States against firms like Apple, Amazon, Google, and Meta for anticompetitive behavior.
The European Commission, the EU’s executive arm, has the authority to fine companies up to 10% of their global revenue, potentially amounting to billions of dollars annually for each tech giant. The investigations will focus on whether Apple and Alphabet have unfairly favored their own app stores to exclude competitors, while Google will also be scrutinized for its search results display in Europe and Meta for its ad-free subscription service and data usage for advertising.
Despite the companies’ efforts to make changes to comply with the Digital Markets Act, regulators have deemed their measures insufficient. Margrethe Vestager, the European Commission’s executive vice president, emphasized the seriousness of compliance with the law, stating that certain measures have fallen short of expectations.
The investigations underscore the EU’s ongoing efforts to curb the dominance of tech giants in the digital economy. Recent fines against Apple and ongoing investigations into Amazon, Google, and Meta demonstrate the EU’s commitment to regulating the tech sector. The Digital Markets Act aims to empower regulators to enforce changes in business practices without lengthy antitrust lawsuits, ensuring fair competition in the market.
As the investigations progress, Alphabet, Apple, and Meta will be required to provide more information to regulators about their operations. The companies have already made some changes to comply with the new rules, such as Apple allowing outside app stores on iPhones and iPads in the EU, Google adjusting search result displays, and Meta introducing a subscription service for ad-free Facebook and Instagram use.
The tech industry awaits the outcome of the investigations, with many stakeholders expressing concerns about the companies’ compliance with the new competition law. The EU’s actions have been praised by consumer groups, signaling a strong stance on enforcing the Digital Markets Act to promote fair competition in the tech sector.
