The European Union has embarked on a series of investigations into tech giants Apple, Meta Platforms, and Google parent Alphabet under its newly implemented Digital Markets Act, ushering in heightened regulatory scrutiny for these major U.S. technology corporations on a global scale.
Unveiled on Monday, these probes signify the initial actions taken under the EU’s Digital Markets Act law, which officially came into effect earlier this month. The move follows swiftly after the Justice Department filed a lawsuit against Apple, alleging that the company’s practices hinder competitors from seamlessly integrating with the iPhone, potentially resulting in increased costs for consumers.
In the spotlight of these investigations are Apple and Google, both now subject to EU scrutiny regarding their compliance with regulations mandating app developers’ ability to inform users about alternative offers outside the confines of their respective app stores. The European Commission, the EU’s executive body, has voiced concerns over the limitations imposed by these tech giants on developers’ capacity to communicate freely with users and promote their offerings.
Furthermore, the EU’s examination will delve into changes introduced by Google concerning the display of search results within Europe. The new digital competition law stipulates that companies are prohibited from favoring their own services over similar offerings from competitors, prompting the need for scrutiny into Google’s practices.
An additional facet of the investigations will focus on Apple’s adherence to regulations ensuring users’ ability to uninstall software applications, adjust default settings on their iPhones, and access choice screens offering alternative search engine and browser options.
Moreover, the EU will scrutinize Meta’s implementation of its “pay or consent” model, launched last fall. Under this scheme, European users who decline to grant Meta permission to utilize their digital activity for targeted advertising on Instagram and Facebook are required to subscribe to a monthly fee, ranging up to approximately $11.
The implementation of the EU’s new law marks a significant milestone, compelling some of the world’s largest technology companies to comply with an extensive array of regulations aimed at fostering competition from smaller players in digital advertising, online search, and app ecosystems. As part of this compliance effort, companies have commenced presenting their strategies to regulators, app developers, and competitors through workshops held in Brussels during the preceding week.
Sources: livemint.com