The Digital Markets Act (DMA) enforced by the European Commission has prompted an investigation into the practices of Apple, Meta, Amazon, and Alphabet, which is the parent company of Google. The Commission suspects that these companies have not fully complied with their obligations under the DMA. The EU antitrust regulators have specifically targeted certain rules and practices of these companies. Alphabet’s rules on “steering” in the Google Play store and self-preferencing in Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari, and Meta’s “pay or consent model” are all under scrutiny. The Commission is also looking into Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace. These companies have been instructed to maintain specific documents to ensure effective implementation and compliance with their obligations. The investigation is expected to conclude within 12 months, and if any infringements are found, the Commission may impose fines of up to 10% of the company’s total worldwide turnover. In certain cases of systematic infringement, the “gatekeeper” may be required to sell off parts of the company or be prevented from acquiring additional services. The DMA is a legislation aimed at creating fair and competitive markets in the digital sector. It serves as a regulator for “gatekeepers,” which are defined as large digital platforms that have the power to create bottlenecks in the digital economy. Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft are designated as the six gatekeepers under the DMA. These companies were given until March 7 to fully comply with DMA requirements. This investigation comes after the United States Department of Justice filed a lawsuit against Apple on March 21, accusing the company of illegally stifling competition and innovation through its app market rules and “monopoly” power. The lawsuit also claims that Apple has a monopoly in the smartphone market and forces developers to use its payment system to lock in users and developers on its platform.
EU initiates investigation into Apple, Google, and Meta for breaching the Digital Markets Act