(CN) — European Union regulators on Monday launched probes into whether Apple, Google and Meta are violating the bloc's tough new rules to combat the anticompetitive practices of Big Tech.
The European Commission said it opened investigations into Alphabet, Google's parent company, as well as Apple and Meta to determine whether they are complying with the Digital Markets Act, which went into force earlier this month. The agency plans to conclude the antitrust investigations within a year.
The commission, the EU's executive branch, doubted whether changes the companies made to their services to comply with the rules were sufficient. The law applies only to the way the companies operate within the EU and how they interact with EU users.
“We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA,” said Margrethe Vestager, a commission vice-president in charge of competition policy.
In particular, regulators are concerned about how Google and Apple may be restricting app developers' ability to steer users to offers outside their respective app stores; how Google may be favoring its own services over those of competitors in its search engine; whether Apple has made it simple enough for users to choose browsers other than Safari; and how Meta tells users they can pay for ad-free versions of Facebook and Instagram or to allow their data to be used.
The commission also intends to look into Apple's new fee structure for alternative app stores and Amazon's method of ranking products on its marketplace.
Last September, the EU subjected Alphabet, Amazon, Apple, Meta, Microsoft and ByteDance, the Chinese owner of TikTok, to the rules, which are tailored to rein in the biggest tech companies and curtail their abuses and unfair practices.
Failure to comply can result in fines as high as 10% of a company’s total worldwide annual turnover and even up to 20% for repeated infringements.
For European users, the rules have forced changes to 22 digital platforms run by the six companies, including Facebook, Instagram, TikTok, Chrome, Safari, Amazon Marketplace, YouTube, WhatsApp, Messenger, Google Maps and Google Play.
Critics have warned the rules will change tech companies' behavior only superficially, do little to level the playing field and may end up having unintended consequences, such as hurting smaller internet companies and leaving Europeans with fewer choices.
But EU regulators hail these rules as part of a groundbreaking effort to protect users' privacy, stop the proliferation of disinformation and harmful content and curb what regulators see as unfair profiteering by tech giants.
The EU has taken on tech giants — and imposed huge fines — in a series of cases over the past decade with mixed results. Recently, the EU hit Apple with a 1.8-billion-euro ($1.9 billion) fine for preventing users from accessing alternative music streaming subscriptions.
Brussels insists the rules are a milestone for online freedom and innovation in Europe by bringing down obstacles faced by smaller tech competitors and giving consumers more choices.
However, even before Monday's announcements, the rules faced legal hurdles with Apple, ByteDance and Meta challenging parts of the law.
Apple has become a big critic of the law, arguing that giving its iPhone and iPad users access to rival app stores and payment systems leaves them vulnerable to security risks. This is the first time Apple is being forced to open its App Store to rivals.
Courthouse News reporter Cain Burdeau is based in the European Union.
Follow @cainburdeau
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
