In a move that could reshape the digital landscape, the European Union (EU) has launched its first investigations under the recently enacted Digital Markets Act (DMA). The targeted companies? Tech giants Apple, Google (Alphabet), and Meta (formerly Facebook).
These probes signal a potential showdown between the EU and some of the world’s most powerful companies, raising concerns about their dominance in the European market.
The investigations will delve into specific practices of each company. Google faces scrutiny over whether it prioritizes its own services in both Google Play Store searches and general search results. Apple’s App Store rules are under the microscope, particularly regarding steering users towards Apple’s payment methods and restricting functionality of third-party apps. Finally, Meta will have to explain its “pay or consent” model, where users are pressured to share personal data for continued access to free services.
The DMA grants the EU significant power to investigate and potentially sanction companies deemed “gatekeepers” of the digital market. Companies found in violation could face hefty fines and be forced to change their practices.
This move reflects the EU’s growing concern about the immense power wielded by big tech companies and their potential to stifle competition and innovation. The outcome of these investigations will be closely watched by regulators and businesses around the world, with potential implications for the global digital market.