EU launches investigation into Alphabet, Apple and Meta for suspected violation of the Digital Markets Act | EUROtoday

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The European Commission has launched a non-compliance investigation in opposition to Alphabet, Apple and Meta beneath the Digital Markets Act (DMA). As acknowledged in a observe and as introduced by the EU Competition Commissioner Margrethe Vestager, the Commission has launched an investigation in opposition to the three American giants and, specifically, into potential non-compliance of Google Play and Google Search, of the App Store and Safari's search display, and the “payment and consent model” of Meta, which controls Facebook.

The Commission suspects that the measures carried out will not be in a position to assure efficient achievement of the obligations imposed by the DMA. Additionally, the Commission launched investigations into Apple's new pricing construction for various app shops and Amazon's rating practices on its market. Finally, the Commission ordered firms to retain sure paperwork to watch the efficient implementation and compliance with their obligations.

«We categorical concern and proceed to watch the state of affairs intently. In normal, we wish the DMA to be utilized exactly and ensure that no firm tries to avoid the foundations”, said Vestager, underlining that the Commission “all the time works with all events concerned to confirm whether or not there are irregularities”.

Investigation to be completed in 12 months, risk of heavy fines

The commissioner explained that, at the moment, the investigation has been launched against some companies, but “it doesn’t imply that different teams will not be concerned if essential points emerge”. The investigation, Vestager said, “should be concluded within 12 months.” In the event of a violation, the Commission can impose fines of up to 10% of the company's total turnover globally, which can increase to 20% in the event of a repeat violation.

More specifically, the Commission has initiated proceedings to assess whether the measures implemented by Alphabet and Apple in relation to their obligations on app stores violate the DMA: Article 5 of the law requires gatekeepers to allow app developers to “direct ” (steer) shoppers in direction of presents exterior of app shops, at no cost. The Commission additionally needs to establish whether or not Alphabet's show of Google search outcomes might result in self-referentiality in relation to Google's vertical search providers (for instance, Google Shopping, Google Flights and Google Hotels) in comparison with related providers of opponents.