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The European Union has launched the first investigations under its sweeping new Digital Markets Act (DMA), targeting tech giants Apple, Google's parent company Alphabet, and Meta, Facebook's parent company.
The European Commission, the EU's antitrust regulator, announced the probes on Monday, suspecting the companies' practices "fall short of effective compliance of their obligations under the DMA."
The DMA, which came into effect earlier in March, aims to curb the power of big tech companies and create a fairer digital marketplace.
Here's a breakdown of the specific areas under investigation:
- App Store Rules: The EU is looking into whether Apple's App Store rules unfairly restrict competition for app developers.
- Browser Choice Screen: Apple may be forcing users towards its Safari browser instead of allowing a fair choice among competitors.
- Google Search: The EU is investigating whether Google prioritizes its own services (Google Shopping, Flights, Hotels) in search results, potentially stifling competition.
- Meta Subscriptions: The EU will examine whether Meta's subscription practices on platforms like Facebook and Instagram are fair and transparent.
These investigations could result in hefty fines for the tech giants if the EU finds them in violation of the DMA. The fines can reach up to 10% of a company's global revenue, and even 20% for repeat offenders.
The move marks a significant step towards the EU enforcing stricter regulations on big tech companies. The outcome of these investigations will be closely watched by regulators and tech companies worldwide.
