EU opens investigation into Apple, Google, Meta, under new Digital Markets Act

The European Union (EU) regulators have initiated investigations into three tech giants - Apple, Google, and Facebook’s parent company, Meta, under the newly enacted Digital Markets Act (DMA). The DMA, designed to prevent Big Tech companies from monopolising market share, came into effect earlier this month. This marks the European Commission’s first-ever investigation under these new rules, according to a report by Reuters.

The DMA is a comprehensive rulebook targeting Big Tech “gatekeeper” companies that provide “core platform services”. It mandates these companies to adhere to a set of rules and regulations, with non-compliance attracting hefty financial penalties or even business dissolution.

The new EU rules aim to make digital markets “fairer” and “more contestable” by dismantling closed tech ecosystems that bind consumers to a single company’s products or services. The commission suspects that the measures implemented by these gatekeepers may not effectively comply with their obligations under the DMA.

Investigations into Google, Apple, and Meta

The commission is probing whether Google and Apple are fully complying with the DMA’s rules that require tech companies to allow app developers to direct users to offers available outside their app stores. It expressed concerns over the two companies imposing “various restrictions and limitations”, including charging fees that inhibit apps from freely promoting offers.

Google is under scrutiny for possibly violating DMA provisions that prohibit tech giants from favoring their own services over competitors. The commission is worried that Google’s measures may result in third-party services listed on Google’s search results page not being treated “in a fair and non-discriminatory manner.”

In Apple’s case, the commission is investigating if the company is facilitating iPhone users to easily switch web browsers.

The commission is also examining Meta’s option for users to pay a monthly fee for ad-free versions of Facebook or Instagram to avoid the use of their personal data for targeted online ads. The commission expressed concern that Meta’s ‘pay or consent’ model may not provide a real alternative for users who do not consent, thereby not achieving the objective of preventing the accumulation of personal data by gatekeepers.

Apple’s antitrust issues with India’s Competition Commission

In addition to the EU investigation, Apple has been under scrutiny by the Competition Commission of India (CCI) since December 2021. The investigation was triggered by a complaint filed by Indian startups alleging that Apple is exploiting its dominance in the market for app distribution through its App Store policies. The allegations against Apple include bundling the app distribution service and payment processing service, making the use of Apple’s in-app purchase (IAP) mandatory, prohibiting app developers from informing users about the ability to purchase on the web, charging high commissions to app developers, restricting third-party app stores, and acting as an intermediary between the app developer and app user, which would allow Apple to enter or protect its downstream market.