Both Own Platform and Third-Party Services Must Be Allowed
Fines Up to 10% of Global Annual Total Revenue
The European Union (EU) has launched an investigation into Alphabet, Apple, and Meta for potential violations of the Digital Markets Act (DMA). This is the first investigation since the implementation of the so-called "Big Tech Fairness Act" earlier this month.
On the 25th (local time), the European Commission announced in a press release that it will assess whether the measures taken by Alphabet and Apple regarding the obligations imposed on their app stores violate the DMA.
The DMA is legislation designed to regulate the abuse of market dominance by large platform operators. Under the DMA, six platform operators designated as "gatekeepers," including Alphabet and Apple, are required to allow both external applications and alternative app stores on their platforms, as well as third-party services.
In accordance with the DMA, Apple has allowed the installation of third-party app stores on iPhones for the first time since the launch of the App Store. Google has also changed the default settings on Android phones to remove its own search engine, allowing users to select their preferred option. The search results page now lists its own booking service alongside competing sites.
The EU is investigating whether Apple has taken sufficient measures to enable iPhone users to easily change their default web browser and operating system settings, and whether Google treats third-party services displayed in search results fairly and without discrimination.
Regarding Meta, the investigation will verify whether it violated the DMA provision requiring user consent when combining personal data across multiple services.
If the EU finds that platform operators have violated DMA obligations, they may face fines of up to 10% of their global annual turnover. Repeated violations could result in fines increasing to 20%.
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