EU Targets Big Tech with Compliance Investigations Under Digital Markets Act

The European Commission has initiated investigations against tech giants Alphabet, Apple, and Meta, focusing on their adherence to the Digital Markets Act (DMA), a regulation aimed at curbing Big Tech’s dominance in the EU. The probes address specific concerns, including Alphabet’s steering rules in the Google Play Store and self-preferencing in Google Search, Apple’s App Store steering practices and Safari’s choice screen, and Meta’s contentious "pay or consent" model. These investigations spotlight the Commission’s suspicion that the companies’ efforts to comply with the DMA are inadequate, particularly in terms of anti-steering provisions that ensure businesses can inform users about cheaper alternatives outside these platforms.

The Commission’s move to enforce the DMA highlights the broader battle against the monopolistic tendencies of major tech companies, aiming to ensure fair competition and consumer choice in the digital marketplace. The investigations, to be concluded within 12 months, could lead to significant fines for non-compliance, potentially reaching up to 20% of a company’s total worldwide turnover in cases of repeated infringement. This regulatory scrutiny extends beyond these initial areas, with additional investigations into Apple’s new fee structure for alternative app stores and Amazon’s marketplace practices, underscoring the EU’s firm stance on digital market regulation.