Reining in: EU begins probe into app store rules of Google, Apple

Mar25,2024



Apple, Alphabet Google And meta platform They face the risk of potentially huge fines as the EU launches full scrutiny of companies' compliance with tough new laws reining in the power of Big Tech. The European Commission, the executive arm of the group of 27 countries, said this on Monday. Apple And the first investigation under the bloc's Digital Markets Act (DMA) will target Google's App Store rules, how Google search results can unfairly prioritize its services and how Apple users choose its Safari browser. Can make it difficult.
The investigation will also target new subscription fees for Meta's Instagram and Facebook platforms, which could see firms fined up to 10% of global revenue, or 20% in case of repeat violations. “We suspect that the solutions suggested by the three companies do not fully comply with the DMA,” EU antitrust chief Margrethe Vestager said. He said the investigation involved “serious matters”.
The Commission also warned about further investigation into Apple's new fee structure for alternative app stores and Amazon.com's ranking practices on its marketplace. The DMA, which took full effect earlier this month, is a sweeping rulebook that targets Big Tech “gatekeeper” companies that provide “core platform services.”
An Apple spokesperson said the company was confident it complied with the DMA, while Google's competition director, Oliver Bethell, said the company had made significant changes to its services in Europe and would “reconsider its approach in the coming months.” Meta said it has tailored its offering to comply with various regulatory obligations, including the DMA.
For Apple, EU investigation comes as a one-two punch with a broader reckoning antitrust investigation In the US, the iPhone maker has been accused of violating antitrust laws by blocking rivals from accessing hardware and software features on its popular devices. The European Union also recently fined Apple ₹1.8 billion ($2 billion) for preventing music streaming apps from informing users about cheaper deals.



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