Apple, Google, Meta among first tech companies to be probed under EU's new Digital Markets Act

The European Union (EU) is set to launch investigations into several tech companies, including big-wigs like Google, Meta and Apple, to see if they are adhering to new laws aimed at curbing the influence of Big Tech. If the EU finds them negligent, all of these companies are looking at massive fines, ones that will have a significant da

Sources familiar with the matter reveal that the European Commission is preparing to unveil probes into both companies under the EU’s Digital Markets Act in the imminent future.

The focus of the investigations will encompass the new fees, terms, and conditions set by Apple and Google for developers on their respective app stores, according to these insiders who requested anonymity.

Additionally, there’s speculation that a proposal from Meta Platforms Inc., the parent company of Facebook and Instagram, to introduce a subscription fee for users to access these platforms without advertisements, could attract scrutiny under the EU’s expanded regulatory powers.

The intensified scrutiny from the EU coincides with legal action taken against Apple by the US Justice Department and 16 state attorneys general.

They filed a lawsuit on Thursday, alleging antitrust violations by Apple for impeding rivals’ access to hardware and software features on its devices. This development prompted a decline in Apple’s shares by as much as 3.8% during Thursday’s trading, with Alphabet also experiencing a decrease of up to 1.2%.

The Digital Markets Act empowers the EU to impose significant penalties, including fines of up to 10% of a company’s total annual global revenue, and double that for repeated violations. Regulators aim to conclude their investigations within a 12-month timeframe after initiating formal inquiries.

Both the European Commission and Meta declined to comment on the matter, while Apple and Google have yet to respond to requests for comments.

Apple, having recently been fined €1.8 billion ($2 billion) by the EU for obstructing music streaming apps from informing users about cheaper alternatives, has faced heightened scrutiny since the full implementation of the Digital Markets Act on March 7th.

In response to Apple’s proposed changes under the Digital Markets Act, Spotify, which catalyzed the initial complaint against Apple regarding its App Store practices, criticized the additional charges proposed by Apple as “unacceptable” and “nonsensical.” Spotify has requested a meeting with Margrethe Vestager, the EU’s competition chief, to discuss their concerns. Apple’s proposal involves eliminating the historically imposed 30% commission while introducing new charges, a move deemed contentious by industry observers.