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EU Launches Investigations into Tech Titans Apple, Meta, and Alphabet Over Alleged Violations

Apple, Alphabet Google, and Meta's platforms will be investigated for possible violations of the European Union's new Digital Markets Act, European antitrust regulators said on Monday, potentially leading to hefty fines for companies.

The EU rules, which come into force on March 7, aim to challenge the power of big technologies by making it easier for people to access competing online services such as social media platforms, internet browsers, and app stores. That, in turn, should pave the way for smaller firms to compete.

Violations can result in fines of up to 10% of companies’ global annual revenues. U.S. antitrust regulators are also challenging Big Tech for alleged anticompetitive practices that could even lead to the companies’ demise.

Tech companies say they’ve employed thousands of engineers to meet Digital Markets Act requirements that the six “gatekeepers” providers of search engines, chat apps, and other services used by other businesses provide them deal with the multiple options of the role and opponents. But the European Commission said on Monday it suspected measures under the DMA had been ineffective, confirming a Reuters story.

Asked whether the commission had accelerated the process just two weeks after it began, EU industry chief Thierry Breton said the review shouldn’t come as a surprise. “The rules are the rules, we can’t just sit back and wait,” he told a news conference.

APPLE COMPLIANCE

At issue is whether Apple fulfills the obligations of having an options screen that makes it easier for users to uninstall software applications on their iOS operating system, change default settings on iOS, or switch over competing browsers or search engines on iPhones. Another concern for regulators is “steering”: whether Apple imposes restrictions that prevent app developers from notifying users of content offered outside its app store.

Fees or Free of charge

The commission also accepted Apple and Alphabet’s fee structures, saying they were inconsistent with the DMA’s “free” requirement. Recently, the two companies have introduced new funds for some projects.

Breton said Meta, which last November launched ad-free ordering services in Europe that drew criticism from competitors and users, should offer free alternatives.

A spokeswoman for Meta said the company strives to comply with the Code’s guidelines. “Subscriptions as an alternative to advertising are a well-established business model in many industries, and we created Subscription, no Ads to we will address several overlapping regulatory obligations, including the DMA,” the spokesperson said. Google made significant changes to its services and said it would roll out its platform in the coming months.

While the EU officials set a target of completing the investigation within the one year set under the DMA, he said companies have been ordered to keep certain documents, so that relevant information can be obtained in case of investigation they will be in the present and future.

The EU investigation came amid criticism of deficiencies in compliance efforts by app developers and utility companies.

Conclusion: EU investigations into Apple, Meta, and Alphabet show growing regulatory pressure on tech giants accused of abusing power and breaching data privacy laws. As the research continues, the technology awaits its results, anticipating potential changes that could transform the digital landscape in Europe and beyond.