EU probes US tech giants under new digital law

THE European Union yesterday hit Apple, Google parent Alphabet and Meta with the first ever probes under a mammoth digital law, which could lead to big fines against the United States giants.

Among six firms named as market “gatekeepers” under the EU’s landmark Digital Markets Act — along with Amazon, TikTok owner ByteDance and Microsoft — the companies have been obliged to comply with the new law since March 7.

“We are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses,” said the EU’s internal market commissioner, Thierry Breton.

In announcing the probes, the European Commission, the EU’s antitrust regulator, said it suspects the measures the firms have put in place so far “fall short of effective compliance.”

One of the main tech lobbying groups, CCIA, whose members include the three giants targeted, lambasted the probes, accusing the EU of “jumping the gun” and acting too hastily.

The EU’s competition commissioner, Margrethe Vestager, insisted regulators had “definitely” not rushed to probe the companies.

Top officials acknowledge that changes are already taking place, but suggest they do not go far enough.

Under the new rules, the commission can impose fines of up to 10 percent of a company’s total global turnover. This can rise to up to 20 percent for repeat offenders.

The EU can even order the break up of companies.

Unlike the traditional rules that saw probes last for years, the DMA demands regulators complete any probe within 12 months of its start.

Yesterday’s probes are focused on whether Alphabet’s Google Play and Apple’s App Store are allowing app developers to show consumers offers, free of charge, outside of those app marketplaces.

The commission fears that the measures the two companies have taken may not be fully compliant since they impose “various restrictions and limitations.” (AFP)