The probe includes Alphabet’s and Apple’s app store steering practices
The European Commission has initiated investigations into Alphabet, Apple, and Meta for potential non-compliance with the Digital Markets Act (DMA).
The scrutiny revolves around Alphabet’s and Apple’s app store steering practices, Alphabet’s self-preferencing in Google Search, and Meta’s “pay or consent” model. The Commission alleged that Alphabet and Apple may have violated DMA article 5(4), which demands that gatekeepers enable app developers to direct users to external offerings without restrictions. Concerns center on imposed conditions that potentially hinder developers’ abilities to market and directly sell to users.
The Commission is also investigating whether Alphabet unfairly boosts its services in Google Search results, potentially breaching article 6(5) of the DMA by not treating third-party services equally. Apple’s measures for allowing users to uninstall apps, modify default settings, and choose alternative default services through choice screens are also under examination for possibly limiting user autonomy in violation of Article 6(3) of the DMA.
Meta faces scrutiny for its “pay or consent” model, which the Commission suspected may not offer a genuine choice to users who prefer not to consent to data sharing across services, contrary to the DMA’s objective to curb data monopolization by gatekeepers.
The Commission has additionally taken steps to investigate Amazon’s product ranking practices and Apple’s fee structure for alternative app stores, aiming to assess their adherence to the DMA’s anti-self-preferencing and competition fairness principles.
The Commission has issued orders for Alphabet, Amazon, Apple, Meta, and Microsoft to retain relevant documents. The Commission has also granted Meta a six-month extension to comply with the DMA’s interoperability obligation for Facebook Messenger, with the caveat that Meta remains compliant with other DMA obligations.
“We are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses. Should our investigation conclude that there is a lack of full compliance with the DMA, gatekeepers could face heavy fines,” said Thierry Breton, commissioner for internal market.
The Commission’s goal is to conclude these investigations within a year. If the investigations confirm violations, the Commission may impose fines of up to 10 percent of a company’s worldwide turnover, which could increase to 20 percent for repeat offences. The Commission may impose severe sanctions for systematic violations, including forcing a gatekeeper to divest businesses or prohibiting further acquisitions.
Source: thelawyermag.com
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