EU Launches Investigations into Apple, Meta, and Alphabet

In a landmark move, the European Union has initiated investigations into Apple, Alphabet, and Meta for alleged unfair business practices, marking the inaugural deployment of the bloc's Digital Markets Act, which became effective earlier in March 2024.

Under these new regulations, six major tech giants, identified within the EU as "gatekeepers", have been called upon to provide evidence demonstrating their adherence to fair competition principles.

The European Commission has officially announced probes into potential instances of Apple and Alphabet favouring their own app stores unjustly, along with Meta's utilisation of personal data for targeted advertising purposes. Investigations like these fall within the scope of the Digital Markets Act, which went into effect at the beginning of theMarch. If guilty for non-compliance, they could face heavy fines, potentially amounting to 10% of their global turnover.

The EU's executive vice president remarked that if a solution were achievable through discussion alone, it would have been reached already.

The legislation specifies that companies must permit app developers to direct users to products outside of their platforms without financial penalty. Concerns raised by the Commission centre on allegations that Apple and Alphabet have imposed restrictive measures limiting developers' capacity to promote alternative services.

Furthermore, investigation extends to Google's services such as Google Shopping and Google Flights, examining whether the corporation has exhibited preferential treatment in its search results. The Commission is also investigating whether Apple complied with its obligation to allow uninstallation of applications and modification of default settings, browsers, and search engines. Additionally, a close eye is directed toward Meta's new subscription models to ensure compliance with DMA requirements.

Apple has already incurred a fine of 1.8 billion euros for allegedly preventing music streaming apps from informing users about cheaper subscription options. The company has faced legal challenges for exploiting its smartphone dominance to stifle competition. Alphabet and Meta have similarly found themselves in regulatory crosshairs in the EU and globally over recent years.

While the companies assert compliance with regulations and express willingness to cooperate with the Commission, the investigation progress remains uncertain. The Digital Markets Act stipulates a 12-month timeframe for the conclusion of investigations, though the upcoming European elections scheduled for June may influence the deadline's adherence.