The European Commission has initiated its first “non-compliance” investigations against Alphabet, Apple, and Meta under the Digital Markets Act, which aims to prevent Big Tech companies from dominating digital markets.
In a statement released on March 25, the Commission announced that it is investigating Alphabet’s Google Play rules on steering and self-preferencing, Apple’s App Store rules on steering, and the choice screen for Safari, as well as Meta’s “pay or consent model.” Additionally, the Commission has begun investigatory steps regarding Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace.
The Digital Markets Act is designed to address the behavior of large online platforms acting as “gatekeepers” in digital markets, ensuring fair practices online. Together with the Digital Services Act, it is a key component of the European digital strategy.
In September 2023, the European Union designated six companies as gatekeepers—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft—covering 22 core platform services. These gatekeepers are required to comply with guidelines to create a level playing field for competitors and provide users with more choices.
The Commission expressed concerns that the measures implemented by these gatekeepers may not fully comply with their obligations under the Digital Markets Act. The Act came into effect on March 7, and the Commission aims to conclude the investigations within 12 months. In the event of a violation, fines of up to 10% of the company’s total worldwide turnover can be imposed, increasing to 20% for repeated infringements.
Thierry Breton, Commissioner for Internal Market, stated, “The Digital Markets Act became applicable on March 7. We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market. But 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. Should our investigation conclude that there is a lack of full compliance with the DMA, gatekeepers could face heavy fines.”