EU Probes Big Tech Giants Over Digital Markets Act Compliance

On 25th March, EU regulators probed Big Tech giants for potential violations of the Digital Markets Act.

Key Points

Scope of the Digital Markets Act: The law targets Big Tech "gatekeeper" companies, compelling them to adhere to specific regulations to promote fair competition in digital markets.
Allegations Against Google and Apple: The European Commission suspects Google and Apple of non-compliance with DMA rules, particularly regarding app developers' ability to direct users to offers outside their app stores.
Concerns Regarding Google's Practices: Google faces scrutiny for potentially favouring its own services over rivals and imposing restrictions that hinder fair competition in search results.
Apple's Investigation: The commission is investigating Apple's efforts to allow iPhone users to easily change web browsers, questioning whether it meets DMA requirements.
Meta's Ad-Free Option Under Scrutiny: Meta's practice of offering ad-free versions of Facebook or Instagram for a monthly fee is under investigation.
Regulators are concerned that this model may not offer a genuine alternative for users who refuse consent to data usage.

Fair Competition: The investigations aim to ensure fair competition and prevent the accumulation of personal data by Big Tech gatekeepers.
Potential Penalties: Violations of the Digital Markets Act could lead to significant financial penalties or even the breakup of businesses, as outlined in the law.