The European Commission has expressed displeasure with the way major IT companies such as Apple, Google and Meta are implementing the new digital rules. These companies run the risk of facing high fines.
The Digital Markets Act (DMA) came into effect on March 7, 2024, and web giants started complying with the new rules. For example, Apple now allows publishers to launch their own app stores, Google has removed links to Google Maps, and Microsoft allows certain apps to be uninstalled on Windows 11. These changes are just a few examples of the steps companies are taking to comply. with DMA.
However, the European Commission believes that many targeted players are not fully complying with their obligations under the new Digital Markets Act.
So investigations were launched against Apple, Alphabet (Google’s parent company), Meta and Amazon.Commission announced on March 25, 2024.
App Store, Google Play or even Meta payment model
Potential non-compliance with requirements concerns, among other things, Apple’s controversial rules for the App Store, Google’s new rules for Google Play and its potential preference for its own search services, as well as Meta’s payment model for advertising—a free version of Facebook and Instagram.
The European Commission is concerned that the measures taken by Google and Apple are not fully compatible with the DMA, as they contain various restrictions and limitations. These restrictions limit the ability of developers to communicate freely, advertise their deals and enter into contracts directly, including charging various fees.
Additionally, Apple’s new pricing structure and other terms and conditions for distribution of apps from alternative app stores and the Internet may defeat the purpose of the DMA’s obligations.
Higher fines are possible
The European Commission now wants to finalize the open procedure within twelve months. Groups will certainly receive requirements to properly implement the DMA rules.
In case of violation, the commission may impose fines up to Up to 10% of the company’s annual global turnover. In case of repeated violations, this penalty can increase up to 20%. In case of systematic violations, the company can also be dissolved.
In short, a business to follow.
