European Union regulators have set their sights on tech giants Alphabet, Apple, and Meta, launching investigations into potential violations of the region’s new competition law. The inquiries mark the first enforcement actions since the Digital Markets Act came into effect on March 7, signaling the EU’s commitment to enforcing strict competition rules in the tech industry.
The investigations in Brussels target various practices by the companies, including favoring their own app stores to exclude competitors, restrictions on app developers’ communication with customers, and the display of search results in Europe. Alphabet, Apple, and Meta could face fines of up to 10 percent of their global revenue, highlighting the significant financial consequences of non-compliance with the law.
European Commission Executive Vice President Margrethe Vestager emphasized the importance of companies fully complying with the Digital Markets Act, stating that certain measures taken by the tech giants thus far have fallen short of expectations. The investigations come on the heels of a 1.85 billion-euro fine against Apple for unfair practices related to the App Store, underscoring the EU’s ongoing efforts to curb anticompetitive behavior in the digital economy.
The alignment between the United States and Europe on tech regulation has strengthened in recent years, with regulators on both sides of the Atlantic working closely to address concerns about the market power of tech companies. The Digital Markets Act aims to give EU regulators more authority to enforce changes in business practices without lengthy antitrust lawsuits, emphasizing fair competition and preventing companies from favoring their own services over rivals.
As the investigations unfold, Alphabet, Apple, and Meta will be required to provide more information to regulators about their operations. The companies have already made some changes to comply with the new rules, such as allowing outside app stores on Apple devices and adjusting how Google displays search results. Meta’s new ad-free subscription service in the EU has also come under scrutiny for potentially limiting user choice.
The tech industry and consumer groups are closely watching the outcome of these investigations, with many hoping for robust enforcement of the Digital Markets Act. The EU’s actions send a clear message that regulatory authorities are serious about holding tech giants accountable for their business practices and ensuring a level playing field in the digital marketplace.
