HomeMost PopularEuropean Union Investigates Tech Giants Under Digital Markets Act

European Union Investigates Tech Giants Under Digital Markets Act

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EU Commission Launches Probes

Recently, the European Commission has taken a bold step by initiating non-compliance investigations against tech behemoths Google parent Alphabet, Inc., Apple Corp., and Meta Platforms, Inc., the parent company of Facebook. These inquiries, set under the umbrella of the Digital Markets Act, delve into various aspects of their operations and services.

Key Areas of Investigation

The investigations focus on several critical areas within each company. Alphabet’s practices in Google Play and Google Search, such as steering rules and self-preferencing, are under scrutiny. Similarly, Apple’s App Store rules regarding steering and the selection screen for Safari, along with Meta’s controversial β€œpay or consent model,” are also being examined.

Potential Financial Ramifications

If found to be in violation, the Commission wields the power to levy fines of up to 10% of the company’s total global turnover. In cases of repeated infringements, this penalty could soar to as high as 20%. This financial repercussion underscores the gravity of ensuring compliance with regulatory requirements.

Concerns Over Compliance

The European Commission’s suspicions stem from the belief that the measures implemented by these tech giants, acting as gatekeepers, may not fully align with the stipulations outlined in the Digital Markets Act. This underscores the importance of stringent adherence to regulatory frameworks.

Additional Investigatory Actions

Aside from the primary investigations, the Commission has also delved into Apple’s revised fee structure for alternative app stores and Amazon’s practices concerning ranking on its marketplace. These additional inquiries demonstrate a comprehensive approach to ensuring market fairness and integrity.

Compliance Monitoring

To oversee the effective implementation and adherence to obligations, the Commission has mandated that gatekeepers maintain specific documentation. This meticulous monitoring process is essential in upholding transparency and accountability.

Extension for Meta

Furthermore, the Commission has granted Meta a six-month extension to fulfill the interoperability obligation outlined in Article 7 of the DMA for Facebook Messenger. This extension follows a compelling request made by Meta, allowing for a more structured and comprehensive compliance timeline.

The opinions expressed are solely those of the author and not Nasdaq, Inc.

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