EU launches investigation into Meta, Apple and Alphabet under sweeping new technology law

The European Union launched an investigation into Apple, Alphabet and Meta on Monday, the first of its kind under a sweeping new digital markets law.

“Today, the European Commission has launched a non-compliance investigation under the Digital Markets Act (DMA), examining Alphabet's rules for operating on Google Play and self-prioritization in Google Search, Apple's rules for operating in the App Store, and Safari. We have started an investigation into Meta's “Payment or Consent Model'' selection screen. ” the European Commission said in a statement.

The first two studies focus on Alphabet and Apple and are related to so-called anti-steering rules. Under the DMA, tech companies cannot prevent companies from telling users about cheaper options for their products or subscriptions outside of the app store.

EU competition chief Margrethe Vestager said: “The way Apple and Alphabet have implemented the DMA rules on anti-steering appears to be inconsistent with the letter of the law. Apple and Alphabet will continue to charge various recurring fees. and will limit steering.” she said at a press conference on Monday.

Apple is already violating EU rules. This month, the European Commission announced that it found that Apple had imposed restrictions on app developers that prevented them from informing iOS users about alternative, cheaper music subscription services available outside of the app. , the company was fined 1.8 billion euros ($1.95 billion).

In its third investigation, the commission is examining Apple's compliance with its DMA obligations to make it easier for users to uninstall apps on iOS and change default settings. said. The investigation also focuses on whether Apple actively presents users with options to change the default services of iOS, such as his web browser and search engine.

The committee said it is “concerned that Apple's actions, including the design of its web browser selection screen, may prevent users from actually choosing services within Apple's ecosystem.” .

Apple said it believes it is DMA compliant.

“We are confident that our plans are DMA compliant and will continue to engage constructively with the European Commission conducting its investigation. Teams across Apple are committed to ensuring compliance. “We've created a wide range of new developer features, capabilities, and tools for “regulatory regulations,'' an Apple spokesperson told CNBC on Monday.

The European Commission will investigate whether the company's display of Google search results “may lead to self-preference regarding Google's services and other services such as Google Shopping” over similar competing services. The second survey targeted Alphabet.

“We have made significant changes to the way we operate our services in Europe to comply with the Digital Markets Act,” Oliver Bethell, Alphabet's director of competition, said in a statement.

“Over the past year, we have engaged with the European Commission, stakeholders and third parties at dozens of events to receive and respond to feedback and balance competing needs within the ecosystem. We will continue to adhere to our approach in the coming months.”

Alphabet points to a blog post from earlier this month in which the company said it would give Android phone users the option to easily change their default search engine and browser, as well as make it easier to browse regional comparison sites. We have outlined some of the changes, including: Shopping, flights, and more with Google Search.

meta-study

The fifth and final study focuses on Meta and its so-called payment and consent model. Last year, Meta introduced an ad-free subscription model on Facebook and Instagram in Europe. The commission is investigating whether offering an ad-free subscription model or requiring users to agree to terms of service for free services violates the DMA.

“The European Commission has found that the binary choice imposed by Meta’s ‘pay or consent’ model may not provide users with a real choice if they do not consent, and that, as a result, the We are concerned that we will not be able to achieve the objective of preventing the accumulation of

Thierry Breton, the EU's internal market commissioner, told a press conference that there should be a “free alternative option” offered by Meta for “less personalized” services.

“Gatekeeper” is a label for large technology companies that must comply with the EU’s DMA.

“We will continue to use all tools available to us in cases where gatekeepers attempt to evade or violate the DMA's obligations,” Vestager said.

Mehta said subscriptions are a common business model across various industries.

“Subscriptions as an alternative to advertising is an established business model in many industries, and we designed ad-free subscriptions to address several overlapping regulatory obligations, including the DMA. We continue to engage constructively with the committee,” a Meta spokesperson said. he told CNBC on Monday.

Tech giants at risk of fines

The commission has said it intends to conclude its investigation within 12 months, but Vestager and Breton stressed in Monday's press conference that the DMA does not dictate hard deadlines for the investigation's timeline. The regulator will notify the company of its preliminary findings and explain the steps it is taking, or the gatekeeper should take, to address the Commission's concerns.

If a company is found to have violated the DMA, the Commission could impose fines of up to 10% of the tech company's global turnover. In case of repeated violations, these fines can increase to 20%.

The commission also said it is seeking facts and information to determine whether Amazon may be prioritizing its own branded products over competitors on its e-commerce platform. The committee is further investigating Apple's new pricing structure and other terms and conditions for alternative app stores.

This month, the tech giant announced that users in the EU will be able to download apps from its website rather than through its own App Store, a change that Apple has resisted for years.

The EU investigation into Apple and Amazon is not an official investigation.

Sources 1/ https://Google.com/ 2/ https://www.cnbc.com/2024/03/25/eu-launches-probe-into-meta-apple-and-alphabet-under-sweeping-new-tech-law.html The mention sources can contact us to remove/changing this article

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