Global: European Commission to Scrutinize Apple and Google Compliance with DMA

Reports suggest that the European Commission (EC) is gearing up to initiate thorough investigations into tech giants Apple and Google to assess their adherence to the EU’s newly enacted Digital Markets Act (DMA).

According to Bloomberg’s report on Thursday (March 21), the formal probes are poised to be announced imminently.

The investigations will primarily center around the new fee structures, terms, and conditions recently implemented by Apple and Google for app developers, as outlined in the report.

Additionally, the EC’s scrutiny is expected to encompass Meta Platforms, the parent company of Facebook and Instagram. Meta’s proposal to levy a monthly subscription fee for ad-free access to its platforms is also under the commission’s radar, the report noted.

Should these investigations uncover violations, significant fines may be imposed. The DMA empowers the EU to levy penalties of up to 10% of a company’s total annual global revenue, with the potential for higher penalties for repeat infractions.

Typically, the EC endeavors to conclude its investigations within a year of initiating formal proceedings, according to the report.

Earlier this week, on Monday (March 18), Apple defended its practices under the DMA during a hearing, asserting its compliance with the law and rebuffing allegations of insufficient openness of its ecosystems to other players.

Apple attorney Kyle Andeer emphasized, “We were guided first and foremost by ensuring that we’ve complied with the law.” He further stated, “And then second, that we did it in a way that was consistent with our values and consistent with the language that we’ve developed with our users over a very long period of time. And we think we’ve accomplished that.”

Coinciding with Thursday’s report of the impending EC investigation, the U.S. Justice Department and 16 state and district attorneys general announced a lawsuit against Apple, alleging antitrust violations. The lawsuit accuses Apple of monopolizing or attempting to monopolize the smartphone market, including apps, products, and services.

This announcement comes after Apple was fined €1.8 billion ($1.95 billion) by the EC on March 4 for impeding music streaming apps from informing users about cheaper deals on music subscription services.