It appears that the big tech companies cannot catch a break as the European Commission has just opened an investigation targeting Meta, Google, and Apple. The EU regulator has announced that five non-compliance investigations have been opened against the tech giant.
Apple, Amazon, Google, and Meta could end up paying heavy fines if they don't play nicely with the EU
Now, the reason behind these investigations is to find out how Google, Meta, and Apple are complying with the new Digital Markets Act and the rules associated with it. Margrethe Vestager, the EU antitrust chief, has said, “we suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA.”
So. what is the EU looking for? Well, the commission is currently looking to find out whether these companies are actually adhering to the rules they were given. In addition to that, these investigations are also looking to find out whether Google is guilty of self-preferencing its own services in its search engine. In addition to that, Apple's iOS browser choice screen is also under investigation.
Apple and Google aside, Meta is also being investigated for its "pay or consent model" for ad targeting. The regulator has even said that it is looking forward to concluding these investigations within the next 12 months.
The five non-compliance investigations that have been opened are against the likes of Google, Apple, and Meta. Even Amazon is being targeted as the investigation is looking to find out whether Amazon is preferencing its own products in the store. The commission has also given Meta an additional six months to make sure that Messenger is interoperable with other messaging services. Something that Meta has been working on for some time now.
Thierry Breton, the EU Commissioner, said, “We are not convinced that the solutions by Alphabet, Apple, and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses.” He also added, “Should our investigation conclude that there is a lack of full compliance with the DMA, gatekeepers could face heavy fines.”
If Google, Meta, and Apple are found guilty, they are looking at up to 10% of their annual global revenue under the DMA as a fine. If the offenses are repeated, then this could go as high as 20% of the global revenue, and we genuinely hope that does not happen and that the companies actually work towards making improvements to their policies and the way they operate.
EU has been keeping a close eye on all the big companies like Google, Meta, Facebook, and even Amazon. It is slowly but surely becoming evident that the EU is not messing around and is really looking to punish companies that are not compliant.
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