EU Launches Crackdown on Big Tech Over Digital Markets Act Violations
The European Union is wasting no time cracking down on tech giants like Apple, Google, and Meta (Facebook) over potential breaches of its new Digital Markets Act (DMA). Just two weeks after the groundbreaking legislation took effect, EU antitrust regulators have launched investigations into these behemoth companies.
The DMA aims to loosen the grip that Big Tech wields over online platforms, services and software. By making it easier for users to switch between rival offerings like web browsers, app stores and social media, the law seeks to open up more opportunities for smaller innovators to compete.
Failure to comply could prove astronomically costly, with penalties as high as 10% of a company’s annual global revenue. The US has its own escalating antitrust offensive that could theoretically break up tech giants accused of anti-competitive practices.
As “gatekeepers” under the DMA, Apple, Google et al deployed armies of engineers to implement required changes that ostensibly give users more choice and provide rivals access. However, EU officials suspect these efforts fall woefully short of true compliance.
So what specific practices are under the microscope? For Apple, regulators are scrutinizing limitations around uninstalling iOS apps, changing default settings, and switching default browsers/search engines. They’re also probing potential “anti-steering” policies that restrict developers from publicizing off-platform purchasing options.
With Google, the issue is whether it unfairly privileges its own specialized search verticals like Google Shopping over third-party competitors in general search results. Fee structures for certain services at both Apple and Google are also being examined over potential DMA conflicts.
As for Meta, EU industry chief Thierry Breton criticized its new paid subscription offering for avoiding ads, saying it must provide a free alternative per the DMA’s requirements. The Commission is further looking into new policies at Apple governing third-party app stores as well as Amazon’s product ranking practices on its marketplace.
The tech giants firmly defend their compliance efforts thus far. Apple says it incorporated ample feedback and is confident in its approach, while Google states it made major changes to services that it will justify. Meta asserts subscription models are common and its offering accounts for overlapping regulatory obligations like the DMA.
Nevertheless, a defiant Breton declared “The law is the law. We can’t just sit around and wait.” With a one-year target for concluding the sweeping investigations, the Commission has already ordered companies to preserve key documentation as it ramps up scrutiny.
The probes add firepower to intensifying grievances from app developers, business users and others who contend Big Tech’s DMA compliance is lackluster at best. As the landmark legislation gets enforced, the EU is firmly positioning itself to rein in potential abuses of dominance in the digital sphere.
