The European Union (EU) Executive Commission announced on the 25th (local time) that it has launched an investigation into the three major IT companies, Alphabet, Apple, and Meta, on charges of violating the Digital Market Act (DMA). This is the first official investigation after the full implementation of the DMA on March 7th.
According to Reuters, European Commissioner for Internal Market Thierry Breton expressed no surprise at launching a massive investigation just two weeks after the law was fully introduced, saying, “The law is the law. We can’t just sit and wait.” The investigation is expected to be completed within the next year, and depending on the results, these companies could face hefty fines.
The DMA prohibits favoritism for its products and services, cross-selling of the company’s software, and IT conglomerates’ unauthorized use of personal data. Severe violations can result in a fine of up to 10% of annual sales, and repeated offenses can result in a fine of up to 20%.
The EU Executive Commission believes Alphabet and Apple violated the DMA’s commission-free provisions. Both companies have recently introduced new fees for a few of their services.
The EU also believes that Meta, which launched a subscription service in Europe last November that offers no ads, should provide a free alternative option. Meta offers free services to Facebook and Instagram users in the EU if they agree to collect and process data for advertising purposes and charges fees if they do not. The Commission pointed out, “There is a risk that the goal of preventing the collection of personal information will not be achieved.”
The EU Executive Commission also plans to investigate whether Apple makes it easy for users to remove software apps from the iOS operating system, change the default settings of iOS, or switch to a competing browser or search engine on the iPhone.
The EU Executive Commission also pointed out Alphabet’s search service, which prioritizes its services, such as the product comparison site “Google Shopping.”
Unrelated to this investigation, the EU Executive Commission has announced that it is collecting information on Amazon, as there is a possibility that “It may prioritize selling its brand products on the Amazon store.”
On the 21st, the US Department of Justice sued Apple for alleged antitrust violations. Western authorities are intensifying their investigations into the monopolies of large companies in the digital market.
