European Union regulators launched an investigation into Apple, Google and Meta on Monday, the first case under a new law designed to prevent big tech companies from taking over digital markets.
The European Commission, the executive arm of the 27-nation bloc, said it was investigating the companies for “non-compliance” with the Digital Markets Act.
The Digital Markets Act, which came into force earlier this month, is a broad set of rules targeting “gatekeeper” Big Tech companies that provide “core platform services”. These companies must comply with a series of pro and con rules under the threat of hefty financial penalties or even termination. The rules have the broad but vague goal of making digital markets “fairer” and “more competitive” by breaking down closed technology ecosystems that tie consumers to a single company’s products or services.
European Commission Vice President Margrethe Vestager, the bloc’s competition chief, said at a press briefing in Brussels that the commission had already received complaints that measures taken by technology companies to comply with the rules were inadequate. She claimed:
Today, we decided to investigate a number of these suspected non-compliance issues. And as we unearth other problems, we will tackle those too.
The companies have been ordered to keep certain documents that the commission can access in ongoing and future investigations, she said.
Regulators are investigating whether Google and Apple are fully complying with DMA rules requiring tech companies to allow app developers to direct users to cheaper options available outside their app shops. The commission said it was concerned that the two companies impose “various restrictions and limits”, including charging recurring fees that prevent apps from freely promoting offerings.
Google is also under scrutiny for failing to comply with DMA regulations, which prevent tech giants from favouring their own services over competitors. The Commission said it was concerned that Google’s measures would result in third-party services on Google’s search results page not being treated in a “fair and non-discriminatory manner”.
The commission is also looking into whether Apple is doing enough to make it easy for iPhone users to change web browsers. Apple officials said they were confident its plan complies with the DMA and “will continue to engage constructively with the European Commission during the investigation”. The company said it has created a wide range of new features, functions and tools for developers to comply with the law.
The Commission is also investigating Meta’s ability for European users to pay a monthly fee for ad-free versions of Facebook or Instagram to avoid their personal data being used for targeted online advertising. The Commission said it intends to finalise the investigation within 12 months.
