EU Probes Big Tech Giants Over Digital Markets Act Compliance

• 26 Mar 2024

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.