EU to investigate tech gatekeepers over new act

Apple, Alphabet’s Google and Meta Platforms will be investigated for potential breaches of the Digital Markets Act, EU antitrust regulators said on Monday, potentially leading to hefty fines for the companies.

The law, effective from March 7, requires six gatekeepers — which provide services such as search engines, social networks and chat apps used by other businesses — to comply with guidance to ensure a level playing field for their rivals and to give users more choices. Violations could result in fines of as much as 10% of global annual turnover.

The European Commission said it suspected that the measures put in place by these gatekeepers fall short of effective compliance under the act.

The EU competition enforcer will investigate Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari and Meta’s “pay or consent model”.

Asked if the commission was rushing the process, EU industry chief Thierry Breton said the probe should not be a surprise. “The law is the law. We can’t just sit around and wait,” he said.

He said Meta, which introduced a no-ads subscription service in Europe last November that has triggered criticism from rivals and users, should offer free alternative options.

Google and Apple have similarly introduced new fees for some services.

EU antitrust chief Margrethe Vestager helped pave the way for drastic measures in 2023 when she accused Google of anti-competitive practices in its adtech business. She said that requiring Google to sell some assets seemed the only way to avoid conflicts of interest.

A Meta spokesperson said the company was endeavouring to comply with the act’s guidance. “Subscriptions as an alternative to advertising are a wellestablished business model across many industries, and we designed Subscription for No Ads to address several overlapping regulatory obligations, including the [Digital Markets Act],” a Meta spokesperson said.

Google, which said it had made significant changes to its services, said it would defend its approach in the coming months. Apple said it was confident its plan complied with the act.

The commission is also taking steps to investigate Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace.