The European Union (EU) is cracking down on potential violations of its Digital Markets Act (DMA) by tech companies. Out of the six “gatekeeper” firms; Apple, Alphabet (Google), Meta (Facebook), and Amazon have come under scrutiny for possible non-compliance. Non-compliance with the regulations can result in financial penalties amounting to up to 10% of their annual turnover.
Two weeks after the firms filed compliance reports, Apple and Alphabet are under investigations for limiting communication and steering. Basically, the EU believes Apple and Alphabet (Google) restrict businesses from freely contacting customers and offering them better deals outside their app stores (anti-steering). These companies might still be charging unnecessary fees for such communication.
Secondly, the European body suspects Apple makes it difficult for users to delete certain apps (like Apple Photos) and change default settings, including cloud storage preferences. Additionally, the EU believes Apple’s web browser, Safari, limits user choice.
Google is also facing a separate investigation for prioritizing its own products and services in search results. This potentially gives it an unfair advantage. Coincidentally, the EU is gathering more information to see if Amazon favors its own products.
Meta is under investigations due to its subscription service for ad-free Facebook and Instagram. The EU argues this essentially forces users into a “pay or be tracked” situation, where free service comes with data collection for targeted ads. The DMA requires separate and freely given consent for data use across different services.
READ: Meta Tracks Your Every Move, Even When You’re Not on Facebook
The EU expects to conclude its investigations into Apple, Alphabet, and Meta within a year. The DMA is an EU regulation that aims to create fairer and more contestable digital markets. The DMA regulates gatekeepers, which are large digital platforms, and establishes criteria for qualifying them as such.
Only last week, US authorities sued Apple for engaging in anticompetitive behaviour, thus, gaining monopoly of the US smartphone market. Also, Apple was fined €1.8 billion by the EU three weeks ago for violating music streaming competition rules.
