EU initiates investigation into Apple, Google, Meta for breaching Digital Markets Act

The Digital Markets Act (DMA) has prompted the European Commission to launch a non-compliance investigation into the practices of Apple, Meta, Amazon, and Alphabet, the parent company of Google. In a statement released on March 25, the Commission expressed suspicions that these companies’ measures fail to comply effectively with their obligations under the DMA. The EU antitrust regulators are specifically targeting Alphabet’s rules on “steering” in the Google Play store and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari, and Meta’s “pay or consent model.” The Commission is also looking into Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace. The companies have been ordered to retain specific documents to monitor the effective implementation and compliance of their obligations. The investigation is expected to conclude within 12 months, and if infringement is found, the Commission has the authority to impose fines of up to 10% of the company’s total worldwide turnover. In cases of systematic infringement, the gatekeeper may be required to divest parts of the company or be prohibited from acquiring additional services. The DMA aims to establish fair and contestable markets in the digital sector and serves as a regulator for gatekeepers, which are defined as large digital platforms that have significant control over the digital economy. Alphabet, Amazon, Apple, ByteDance (the parent company of TikTok), Meta, and Microsoft are designated as the six gatekeepers under the DMA. These companies were given until March 7 to fully comply with the DMA requirements. This investigation follows a lawsuit filed by the United States Department of Justice against Apple on March 21, alleging that the company’s app market rules and monopoly practices have stifled competition and innovation. The lawsuit also claims that Apple holds a monopoly in the smartphone market and coerces developers to use its payment system, thereby locking them and users into its platform.