Economics

3/25/2024, 2:00 PM

EU targets Apple, Meta, and Google

Investigations intensify the regulatory problems of American technology companies under increasing global scrutiny.

The European Union Initiates Investigations Against US Tech Giants Apple, Meta Platforms, and Alphabet, the Parent Company of Google. These steps mark the first applications of the new Digital Markets Act (DMA), a comprehensive law on digital competition that came into effect earlier this month. The EU accuses the companies of potentially not fully complying with the new rules aimed at strengthening competition in the digital space and protecting smaller businesses.

The investigations announced by Competition Commissioner Margrethe Vestager focus on various aspects of the companies' business conduct. Apple and Google are being examined to determine whether they allow developers to inform users about alternative offerings outside of their app stores. The European Commission expressed concerns about the restrictions these companies impose on developers to communicate with users and promote their offers. Furthermore, the Commission is investigating whether Google favors its own services in search results and how Apple deals with rules intended to make it easier for users to remove software applications and change default settings.

Meta is being investigated for its "pay or consent" plan, which imposes a monthly subscription fee on European users who do not agree to the use of their data for targeted advertising. Meta defends this model as an established business practice in many industries.

The investigations fit into a broader picture of regulatory challenges for US tech companies worldwide. The EU emphasizes that the announcement of the investigations does not mean that other companies that have submitted their plans for compliance with the DMA will automatically be approved. The investigations aim to determine whether the companies involved have violated the new rules intended to make the digital market more equitable and open. In case of non-compliance, companies could face penalties of up to 10% of their global turnover.

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