Why did Apple, Meta and Alphabet come under investigation in Brussels?
The European Commission suspects that Apple, Meta and Alphabet – three of the six gatekeepers identified – are not fully compliant with the Digital Markets Act which aims to limit the dominant positions of Big Tech. All the details
Having fully entered into force just over two weeks ago, the Digital Markets Act (DMA), wanted by the European Union to stem abuses and limit the dominant positions of Big Tech, is already starting to show irregularities.
In particular, according to what was declared by the executive vice-president of the European Commission and responsible for competition policy, Margrethe Vestager, Apple, Meta and Alphabet have ended up in the crosshairs, but "it does not mean that other groups are not involved, if critical issues emerge".
The Commission intends to conclude the proceedings launched today within 12 months.
THE EU INVESTIGATION ON APPLE, META AND ALPHABET
“These are serious cases, if we could have resolved them only by discussing with the parties involved, we would have already resolved them and would not have opened the investigation. They are also emblematic cases of what the DMA represents and the usefulness it can have,” Vestager said at a press conference announcing the European Commission's investigation into Apple, Meta and Alphabet for non-compliance under the Digital Markets Act .
SERVICES UNDER INVESTIGATION
In detail, the EU Commission has put under the magnifying glass the Google Play and Google Search services, the App Store and the Safari search screen, Meta's " pay or consent model", who controls Facebook.
“We suspect that the solutions proposed by the three companies are not fully compliant with the DMA. We will continue to use all available tools in the event that a gatekeeper seeks to circumvent or undermine the obligations of the DMA,” added Vestager, explaining that “it is important to achieve the objectives of the DMA, so that consumers can benefit from open markets and contestable."
The EU Commission has also launched investigations into Apple's new pricing structure for alternative app stores and Amazon's ranking practices on its marketplace.
WHAT IS WRONG ACCORDING TO THE COMMISSION
In the case of Alphabet, Brussels wants to ascertain whether the display of Google search results leads to self-referentiality with regard to its vertical search services, such as Google Shopping, Google Flights and Google Hotels compared to similar services from competitors.
Apple, however, will have to demonstrate that it has provided users with the ability to easily uninstall all software applications and easily change default settings on iOS.
Finally, the EU Commission will investigate Meta to verify whether the “payment and consent model” complies with the DMA article which requires gatekeepers to obtain users' consent when they intend to combine or cross-use their personal data between various services of the main platform.
THE DUTIES OF GATEKEEPERS
The gatekeepers are the six companies – Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft – that the EU Commission has identified as important access points between businesses and consumers in relation to digital services.
The commissioner expressed "concern" and underlined that Brussels, in addition to having "engaged deeply over the last six months with both gatekeepers and interested parties to promote full and effective compliance with the DMA", will continue "to carefully monitor the situation".
“We want the DMA to be applied precisely and make sure that no company tries to circumvent the rules,” he added, reiterating that the gatekeepers have been asked to keep documents relating to the areas on which investigations are underway.
WHAT BIG TECH RISKS
In case of violation of the Digital Markets Act, the EU Commission can impose fines of up to 10% of the company's total turnover globally, which can reach up to 20% in the event of a repeated violation.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/perche-apple-meta-e-alphabet-sono-finiti-sotto-indagine-a-bruxelles/ on Mon, 25 Mar 2024 15:23:37 +0000.