- Digital giants are trying every avenue to comply with DMA requirements.
- A number of sanctions are in sight for non-compliance with competition rules.
- On March 25, the European Commission launched an investigation targeting major digital groups.
On March 25, the European Commission launched infringement proceedings against Apple, Google, Facebook and Amazon.
These behemoths are suspected of not respecting the new European competition rules on digital markets, a situation that does not go unnoticed in Brussels.
EU criticizes digital giants for not respecting competition rules
Tightening its tone against these tech giants, the EU has initiated infringement procedures, accusing them of non-compliance with the Digital Markets Act (DMA). Came into force on 7 March. Thierry Breton, the European Commissioner for Digital Affairs, stressed that despite the efforts observed on the market, doubts remain whether these companies will comply with their obligations.
Tech lobby CCIA has criticized Brussels’ haste in the investigation, saying it could be politicised. In response, the accused groups assured their compliance and promised to continue discussions with the EU. Potential penalties for non-compliance are now higher, up to 20% of global turnover, compared to 10% previously. Brussels has also given itself the power to wind up these companies in the event of serious and repeated violations, an unpopular measure of last resort.
Google, the technology giant, is once again under fire, accused by the European Commission Favored its own comparators in search results, to the detriment of its competitors. This practice has already earned Alphabet (Google). 2.4 billion euros in fines in 2017But the proposed solutions were not considered satisfactory.
Today, we launched five non-compliance investigations under the Digital Markets Act.
It concerns:
🔹Alphabet rules on steering in Google Play
🔹Alphabet auto-selection on Google search
🔹Apple’s rules on steering in the App Store
🔹Apple’s preferred screen for Safari… pic.twitter.com/kiZ7sLQa8B— European Commission (@EU_Commission) March 25, 2024
Apple: A bad student in the EU?
At the same time, Alphabet and Apple face accusations of unfair restrictions in their respective app stores, Google Play and the App Store. According to the Commission, these two companies limit the freedom of developers to promote their applications and conclude direct contracts with users by imposing fees.
Apple has already been punished A fine of 1.8 billion euros Following a complaint from Spotify, for similar practices. In addition, the Commission is investigating Apple’s new pricing system, which may violate its obligation to allow app downloads to the App Store from alternative stores.
These cases highlight the monopolistic practices of tech giants with potential consequences in Europe and the United States.
Recently, the European Commission launched a new investigation targeting Apple, which is suspected of not respecting rules on uninstalling default apps on its iOS operating system used on the popular iPhone. Authorities are concerned that the design of the web browser’s selection screen does not sufficiently limit users’ ability to opt out of Safari.
Meta: A new approach that does not please
Social media giant Meta, formerly Facebook, is also in the commission’s crosshairs for practices linked to the collection of personal data. The company is accused of seeking users’ consent to combine this data for ad profiling purposes.
Meta recently proposed a Paid subscription to avoid targeted adsBut according to Brussels, users of the free service must agree to share their personal data, with no real option offered.
Amazon: On a common thread within the European Commission
Finally, Amazon is also under fire, suspected of using its referral system to favor its own product brands on its online commerce platform. The European Commission is closely investigating this practice which could threaten competition in the e-commerce market.
