The European Union has begun probe into major tech players like Apple, Meta Platforms, and Google’s parent company Alphabet. These probes are the first under the EU’s new Digital Markets Act law, which recently came into force. These investigations mark another step in the growing regulatory scrutiny that big US tech firms are facing worldwide.
The investigations come shortly after the US Justice Department filed a lawsuit against Apple, alleging that the company’s practices make it tough for competitors to integrate with the iPhone, ultimately leading to higher prices for consumers.
One focus of the EU’s investigation is how Apple and Google adhere to rules mandating that they allow app developers to inform customers about alternative offers outside their main app stores. The European Commission is worried about restrictions that these tech giants impose on developers’ ability to communicate freely with users and promote their offers.
Additionally, the EU will scrutinize changes made by Google in how its search results are displayed in Europe. The new digital competition law prohibits companies from giving preference to their own services over similar ones offered by competitors.
Another aspect of the investigation will delve into how Apple follows rules ensuring that users can easily uninstall software applications and change default settings on their iPhones. It will also assess how Apple presents choice screens offering alternative search engine and browser options.
Furthermore, the EU plans to investigate Meta Platforms’ “pay or consent” scheme, which was introduced last fall. Under this plan, European users who decline to allow Meta to use their digital activity for targeted advertising on platforms like Instagram and Facebook must pay a monthly subscription fee of up to approximately $11.
The EU’s new law, which came into effect earlier this month, imposes a series of new rules on some of the world’s largest tech companies. These rules aim to enhance competition from smaller firms in areas such as digital advertising, online search, and app ecosystems. Companies have begun presenting their compliance plans to regulators, app developers, and rival businesses through workshops held in Brussels.
These investigations underscore the EU’s commitment to ensuring fair competition in the digital marketplace and holding tech giants accountable for their practices. As scrutiny intensifies, the outcomes of these probes could have significant implications for the future of digital regulation and competition globally.
