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EU Launches Investigations Under Digital Markets Act Against Tech Giants

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EU Launches Investigations Under Digital Markets Act Against Tech Giants

In a swift move to enforce the newly implemented Digital Markets Act (D.M.A.), EU officials have initiated investigations targeting major tech companies to mitigate the dominance of large ‘gatekeeper’ platforms in the online sphere.

Today, the EU Commission announced inquiries into alleged non-compliance by industry giants Google, Apple, and Meta (formerly Facebook). These investigations target Google’s preferential treatment of the Google Play Store in its search results, Apple’s steering rules within the App Store, and Meta’s controversial ad-free subscription plan.

The scrutiny surrounding app store tactics has been ongoing due to concerns about the competitive advantage bestowed upon store owners. However, debates over these practices often fall short in addressing potential infringements on fair business practices.

Meanwhile, Meta’s ad-free subscription service, which allows users to opt out of data tracking and ads for a monthly fee, has drawn criticism from privacy advocates. Last week, Meta announced a price reduction for the package in an attempt to garner wider support.

In addition to these cases, the EU Commission is also investigating Apple’s revised fee structure for alternative app stores and Amazon’s marketplace ranking practices.

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These investigations mark a significant development, particularly considering the recent enforcement of the D.M.A. earlier this month.

The primary objective of the EU Digital Markets Act is to promote competition in the market by ensuring that ‘gatekeeper’ platforms facilitate third-party interoperability and provide users and businesses with transparent access to their data.

Designated as gatekeeper platforms, Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft are under intense scrutiny, with all but one included in the initial enforcement actions under the D.M.A.

While it’s too early to determine the overall impact of the D.M.A. and other EU regulations, one thing is certain: compliance will come at a cost for these tech giants as they adapt their operations to meet the new regulatory standards.

Furthermore, EU officials are actively exercising their newfound authority, extending their scrutiny to additional platforms such as X and TikTok under the newly established Digital Services Act (D.S.A.), reinforcing their commitment to regulatory oversight in the digital realm.

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