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Occurrences
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Exhibitions
Apple, Google, Meta are some of the premier tech firms to face scrutiny under EU's fresh Digital Markets Act
Several tech corporations, including Google, Meta, and Apple, are slated to undergo a European Commission inquiry to determine their adherence to the recently introduced Digital Markets Act. Should the commission deem them non-compliant, they may be liable to pay 10% of their worldwide earnings.
The European Union (EU) is preparing to initiate probes into numerous technology firms, encompassing giants such as Google, Meta, and Apple. The objective is to ascertain whether these companies are complying with the latest legislation designed to restrict the power of Big Tech. If these corporations are deemed non-compliant, they could face substantial penalties, which 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.
The scope of the inquiries will cover the newly implemented charges, terms, and stipulations imposed by Apple and Google for developers on their individual app stores, according to these anonymous sources.
Moreover, there are rumors that a suggestion from Meta Platforms Inc., the parent firm of Facebook and Instagram, to implement a subscription charge for users to use these platforms ad-free, may draw attention under the EU's enhanced regulatory authority.
The heightened inspection from the EU occurs simultaneously with the legal proceedings initiated against Apple by the US Justice Department and attorneys general from 16 states.
A lawsuit was lodged against Apple on Thursday, accusing the tech giant of antitrust breaches by blocking competitors' access to hardware and software functionalities on their devices. As a result of this news, Apple's stock fell by up to 3.8% during Thursday's trading, while Alphabet's shares also dropped, with a decrease of up to 1.2%.
The Digital Markets Act gives the EU the authority to enforce substantial sanctions, which can include fines amounting to 10% of a company's total yearly global earnings, and twice as much for recurring infringements. The regulatory bodies intend to finish their probes within a year of starting official investigations.
Neither the European Commission nor Meta have made any statements regarding the issue, and as of now, Apple and Google have not yet replied to inquiries for their opinions.
Apple has recently come under increased examination after being penalized €1.8 billion ($2 billion) by the EU for preventing music streaming apps from letting users know about less expensive options. This is particularly since the complete enactment of the Digital Markets Act on March 7th.
Spotify, the company that first raised issues about Apple's App Store policies, has taken issue with Apple's suggested alterations under the Digital Markets Act. They've labeled the new charges that Apple wants to impose as "unacceptable" and "illogical." Spotify has asked for a meeting with the EU's competition head, Margrethe Vestager, to talk about their worries. Apple's idea to scrap the traditional 30% commission and replace it with new fees has been seen as controversial by those in the industry.
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