The EU Is Already Investigating Apple, Google and Meta for DMA Violations
It looks like the European Union is wasting no time enforcing its Digital Markets Act (DMA): On Monday, we learned that Apple, Google and Meta will be investigated for potential DMA violations . If found guilty, each company could face up to 10% of its total annual revenue not only in the EU, but worldwide – 20% for “repeated infringement”. Break EU laws, pay everywhere with the money you earn.
The DMA is only 18 days old from the announcement of this investigation: Europe implemented the law on March 7th, a deadline that these big tech companies had to comply with. Apple , for example, was required to offer developers the ability to create their own third-party app stores, as well as create true mobile browsers not based on the Safari WebKit platform. Meta , on the other hand, needed to open up WhatsApp and Messenger to third-party messaging services. The European Commission calls six companies ” gatekeepers “, indicating that they block third-party innovation through the use of certain applications and services. (Interestingly, Apple’s iMessage was not recognized as a gatekeeper service.) In addition to Apple, Google, and Meta, the Commission found Amazon, ByteDance, and Microsoft as gatekeepers.
Each company has raised its own concerns with the Commission as they examine whether Apple actually makes it easier to uninstall apps on iOS, changes default settings, or provides clear information offering users the option to switch to third-party browsers and search engines. The commission is investigating Google’s efforts to promote its own services, such as Google Flights, Google Hotels and Google Shopping, over third-party options, and whether it suppresses third-party search results. Meta is under investigation over an ad-free subscription service that the company introduced to offer a solution for users who do not consent to data collection. (The company also has an additional six months to comply with interoperability requirements.) The commission believes the company should offer other free alternatives. The commission is also looking into whether Amazon promotes its services on the Amazon Store, but the company is not named as a key participant in the investigation.
However, the Commission is looking at both Apple and Google on “governance” issues—essentially whether Apple or Google puts obstacles in the way of developers telling users about free third-party offerings that you won’t find in the App Store or Play Store. , respectively. Additionally, they are going after these companies for how they charge users because they claim the new services violate the DMA.
Following the investigation, the Commission will report its findings to regulatory authorities, including any possible fines or changes that these companies must make. For their part, all three companies say they are compliant with the DMA and defend the changes they made. Because the Commission’s investigation will last more than a year, it is likely that we will not know for some time whether the companies will be found guilty.
Look, I’m not an expert on legal issues (European or otherwise), so I don’t know if these companies are actively violating the DMA. But it is good to see the government enacting a law that protects consumers and acting on it immediately when they suspect non-compliance.