Big Tech Under the Microscope: How the EU’s Digital Markets Act is Shaking Up Apple, Google, and Meta

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Apple, Google, and Meta are some of the inaugural tech firms to be scrutinized under the EU's newly implemented Digital Markets Act. The European Commission plans to probe Google, Meta, Apple along with several other tech organizations to ensure they are adhering to the regulations of the new Digital Markets Act. If these companies are found to be in violation of the act, they may face a penalty amounting to 10% of their worldwide earnings.

The European Union (EU) plans to initiate probes into a number of technology firms, notably Google, Meta, and Apple, to verify their compliance with new regulations designed to rein in the power of major tech companies. If found in violation, these corporations could face substantial penalties that would have a major impact.

Insiders have disclosed that the European Commission is getting ready to launch investigations into both firms under the EU's Digital Markets Act in the near future.

The inquiry will concentrate on the fresh charges, stipulations, and requirements established by Apple and Google for developers in their individual app stores, as per these sources who asked for their identities to be kept secret.

There are rumors that Meta Platforms Inc., the umbrella corporation for Facebook and Instagram, may face regulatory examination from the EU if they implement a subscription fee allowing users to browse their platforms ad-free. This scrutiny could be due to the EU's increased regulatory authority.

The heightened inspection from the EU occurs simultaneously with the legal measures enforced against Apple by the US Justice Department and 16 state legal representatives.

A legal action was initiated against Apple on Thursday, accusing the tech giant of antitrust breaches for restricting competitor's access to hardware and software attributes on its products. This event triggered a drop in Apple's stocks by nearly 3.8% during Thursday's market activity, with Alphabet also observing a fall of about 1.2%.

The Digital Markets Act grants the EU the authority to enforce substantial sanctions, such as fines amounting to a maximum of 10% of a firm's overall yearly global income, and twice this amount for recurring breaches. The regulators endeavor to wrap up their probes within a year after commencing official investigations.

Neither the European Commission nor Meta chose to remark on the issue, and Apple and Google have not yet replied to inquiries for their opinions.

Apple recently incurred a €1.8 billion ($2 billion) penalty from the EU for preventing music streaming apps from notifying users of more affordable options. The tech giant has been under intensified examination following the complete enforcement of the Digital Markets Act on March 7th.

Apple's suggested alterations under the Digital Markets Act have been met with criticism from Spotify, the company that sparked the initial grievance about Apple's App Store methods. Spotify has labeled Apple's proposed extra charges as "unacceptable" and "illogical". The music streaming giant has asked for a meeting with Margrethe Vestager, the European Union's competition head, to express their worries. Apple's proposition entails doing away with the traditional 30% commission and introducing new fees, a decision that has stirred controversy among industry watchers.

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