EU Launches Investigation into Tech Giants Google and Apple over Digital Markets Act Violations

The Digital Markets Act (DMA) is a new regulation implemented by the EU Commission aimed at bringing digital giants under control. Google’s parent company Alphabet, Meta (formerly Facebook), and Apple were given until March 7 to make changes to their operations. Despite claims from these companies that they had made changes, the Commission remained unconvinced and initiated an investigation on March 25 that could result in fines of up to 10 percent of the companies’ global turnover.

The goal of the Commission is to promote fair competition, consumer protection, and data privacy in the digital market space. The new legislation gives EU authorities more power to issue fines and enforce compliance, with potential penalties up to 10 percent of a company’s global turnover. Moreover, companies may be forced to divest parts of their operations if found guilty of non-compliance.

The investigation into tech giants like Apple and Google focuses on their app store practices, specifically whether they allow fair competition by not favoring their own services over competitors’. These companies have reached dominant market positions through their products and services but are now being scrutinized for potentially stifling innovation and consumer choice.

Commissioner Margrethe Vestager emphasized the seriousness of the matter by starting the investigation just two weeks after the deadline. The EU’s proactive approach to market regulation with the Digital Market Act is seen as a necessary step in addressing the dominance of these digital giants. By acting preemptively rather than reactively, the EU hopes to create a more competitive and fair digital market for consumers. The potential impact of this legislation extends beyond the EU, with other countries like the United States also monitoring its implementation.