The European Union (EU) is initiating investigations into Apple and Google for potential violations of the Digital Markets Act (DMA), sources familiar with the matter revealed. These investigations will delve into the companies’ app store policies, including recent adjustments, and may extend to scrutinizing Meta’s proposed user fees.
This move by the EU follows the designation of Apple and Google as “gatekeepers” under the DMA, a regulatory framework aimed at curbing favoritism and preventing data consolidation. The legislation seeks to promote fairness by ensuring users and competitors have more options, thus fostering a balanced marketplace.
Breaching the DMA could lead to significant penalties, with fines potentially reaching up to 10% of a company’s global annual turnover. The European Commission is poised to formally announce these investigations in the near future, with decisions likely to be reached before the end of Margrethe Vestager’s term as EU antitrust chief in November.
In addition to EU scrutiny, both Apple and Google are confronting antitrust challenges in the United States. Apple, in particular, is facing legal actions from the US Justice Department and various state prosecutors. This multifaceted regulatory pressure underscores the heightened scrutiny that major tech companies are facing globally.
The implementation of the DMA reflects the EU’s proactive approach to regulating Big Tech, aiming to foster competition and prevent anti-competitive practices. The investigations into Apple, Google, and Meta’s adherence to the DMA represent a significant litmus test for the efficacy of this regulatory framework. The outcomes will be closely monitored by both regulators and industry players alike.
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