European Commission Launches Investigation into Tech Giants for Non-Compliance with Digital Markets Act

New investigation proves EU’s commitment to regulating digital giants

The European Union (EU) has been tireless in enforcing its new digital market regulation, the Digital Markets Act (DMA), which was implemented last year. The world’s largest digital companies, including Google’s parent company Alphabet, Meta (formerly Facebook), and Apple, were given until March 7 to make changes to comply with the regulation. However, despite claims from these companies that they had made adjustments, the Commission remained skeptical.

On Monday, March 25th, the Commission announced that it suspects Google, Meta, and Apple are still not acting in accordance with the regulation. An investigation has been launched, and potential fines could reach up to 10 percent of the companies’ global turnover. The goal is to bring these digital giants under control and ensure compliance with the new regulations.

The traditional fines imposed on these companies in the past have not been effective in curbing their behavior. For example, the EU fined Apple 1.8 billion euros for abusing its dominant market position in the distribution of music streaming apps but this amount was negligible compared to the company’s profits. The new Digital Markets Act gives EU authorities more power to issue fines of up to 10 percent of a company’s global turnover for violations, which could have a more significant impact on these tech giants.

The regulation also includes structural remedies such as forcing companies to sell certain parts of their business operations if they continue to violate rules. Authorities can now intervene proactively to prevent anti-competitive practices and ensure a fair digital market. This approach is a departure from traditional competition laws that tend to intervene after the fact.

The legislation aims to prevent dominant companies from stifling competition and innovation by favoring their own services over competitors. For consumers, this can result in limited choices and potentially higher prices. By taking a proactive approach and implementing strict regulations, EU hopes to level the playing field in the digital market and prevent abuses of power by these companies.

The ongoing legal battles in US such as FTC’s lawsuit against Meta and Apple highlight challenges of regulating companies that have reached dominant market position . EU’s Digital Markets Act sets precedent for proactive market regulation and could serve as model for other countries . By enforcing these rules EU aims

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