Digital Markets Act: European Commission Goes to War on Tech Giants

The European Commission has opened non-compliance investigations under the Digital Markets Act (DMA) against several “Big Tech” companies.

It will investigate Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari and Meta’s “pay or consent model”.

The Commission says it suspects that the measures put in place by these gatekeepers fall short of effective compliance of their obligations under the DMA.

In addition, the Commission has launched investigatory steps relating to Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace.

The executive has also ordered gatekeepers to retain certain documents to monitor the effective implementation and compliance with their obligations.

The EC, in a statement, said it intends to conclude the proceedings opened today within 12 months.

If warranted following the investigation, the Commission will inform the concerned gatekeepers of its preliminary findings and explain the measures it is considering taking or the gatekeeper should take in order to effectively address the Commission’s concerns.

Commenting on the move, Margrethe Vestager, Executive Vice-President in charge of competition policy, confirmed the Commission will open five non-compliance investigations.

She said, “We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA. We will now investigate the companies’ compliance with the DMA, to ensure open and contestable digital markets in Europe.”

Further comment came from Thierry Breton, Commissioner for Internal Market, who noted, “The Digital Markets Act became applicable on March 7th.

“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 lack of full compliance with the DMA, gatekeepers could face heavy fines,” said the French official.

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