Europe investigates Apple, Meta, Google simultaneously

On March 25, the European Commission announced an investigation into non-compliance with the Digital Markets Act (DMA). The law, which came into effect on March 7, aims to open up space for smaller companies to compete fairly with the big players.

Six major tech companies, known as “gatekeepers” — Alphabet, Apple, Meta, Microsoft, Amazon, and ByteDance — are required to implement compliance measures that require them to make it easy for users to switch to other products and services, such as social networks, internet browsers, and app stores, while protecting users’ personal data.

Alphabet, Google's parent company, is under investigation for whether it favors its own products, such as Google Shopping, Flights, and Hotels, in search results. It and Apple are also suspected of placing restrictions on other developers on the Play Store and App Store, making it difficult for them to promote deals to users.

Apple is also under investigation for whether it allows users to easily change default settings and choose alternative services, such as browsers and search engines on iOS. Apple's app store terms and fee structure are also suspected of not fully complying with the DMA.

Meanwhile, since late October last year, Meta has launched a subscription plan in Europe, allowing users to pay 10 euros per month to access the social network without advertising. However, the European Commission is concerned that the "pay or consent" model does not guarantee personal data protection if users choose not to pay.

"We suspect that the solutions proposed by the three companies do not fully comply with the DMA. We will now investigate the companies to ensure open and competitive digital markets in Europe," said Margrethe Vestager, head of the European Union's antitrust authority.

In statements issued shortly afterwards, the three US tech giants all affirmed that they complied with the DMA.

“We are confident in our plans to comply with the DMA and will continue to cooperate constructively with the European Commission as they investigate,” said Julien Trosdorf, an Apple spokesperson.

Meta spokesman Matt Pollard said the subscription model, which replaces advertising, is a long-standing business model across many industries. “We will continue to engage constructively with the Commission,” he said.

Meanwhile, Google's competition chief Oliver Bethell said the company has engaged with the European Commission in dozens of events over the past year to gather feedback. It has also made significant changes to the way it operates in Europe.

Asked whether the investigation was coming too soon, more than two weeks after the new law came into effect, Thierry Breton, the EU's internal market commissioner, said: "The law is the law. We cannot just sit and wait."

The investigation is expected to last a year. Companies have been asked to provide documents and allow access to certain information to serve the investigation.

“If the results show that there is a lack of compliance with the DMA, gatekeepers can face heavy fines,” Breton said. Under the rules, businesses can be fined up to 10% of their annual global turnover. The fine can increase to 20% in the case of repeated violations.