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Apple, Google, and Meta are some of the initial technology firms to be scrutinized under the EU's fresh Digital Markets Act
The European Commission is preparing to examine Google, Meta, Apple, along with several other tech businesses, to see if they are adhering to the recently introduced Digital Markets Act. If these companies are found to be in breach of the act, they could face penalties amounting to 10% of their worldwide earnings.
The European Union (EU) is gearing up to probe multiple technology firms, such as Google, Meta, and Apple, to determine if they are complying with recent regulations designed to limit the power of major tech companies. If these companies are found in violation of these laws, they could be facing substantial penalties that could significantly impact their finances.
Insiders have disclosed that the European Commission is gearing up to launch investigations into both firms under the EU's Digital Markets Act in the near future.
According to anonymous sources, the investigations will primarily scrutinize the recently implemented charges, rules, and terms established by Apple and Google for developers on their individual app platforms.
There are rumors that Meta Platforms Inc., the company behind Facebook and Instagram, may face investigation under the EU's increased regulation authority. This speculation came after Meta proposed introducing a subscription fee for ad-free access to these platforms.
The heightened examination from the EU coincides with the legal steps initiated against Apple by the US Justice Department and attorneys general from 16 states.
A legal action was initiated against Apple on Thursday, accusing it of breaching antitrust laws by restricting competitors' access to hardware and software attributes on its products. This news led to Apple's stock dropping by up to 3.8% throughout Thursday's market activity, while Alphabet's shares also fell by a maximum of 1.2%.
The Digital Markets Act grants the EU the authority to enforce substantial sanctions, such as fines amounting to 10% of a firm's overall yearly global income, and twice as much for repeated offenses. The regulatory bodies strive to wrap up their investigations within a year following the commencement of formal probes.
Neither the European Commission nor Meta have made any statements regarding the issue, and Apple and Google have not yet replied to inquiries for their opinions.
Apple recently received a €1.8 billion ($2 billion) fine from the EU for preventing music streaming apps from notifying users of less costly options. This has led to increased oversight of the company following the complete enforcement of the Digital Markets Act on March 7th.
Spotify reacted to Apple's suggested amendments under the Digital Markets Act, expressing disapproval of the additional fees proposed by Apple, calling them "unacceptable" and "illogical". The music streaming company, which initially lodged a complaint about Apple's App Store policies, has asked for a dialogue with Margrethe Vestager, the European Union's competition head, to voice their apprehensions. Apple's plan, which includes doing away with the long-standing 30% commission and introducing new charges, has been viewed as a controversial move by industry watchers.
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