March 28, 2024
Latest Cryptocurrency News

EU Probes Tech Giants for Anti-Competitive Practices

The European Commission has launched a non-compliance inquiry on digital behemoths such as Apple, Meta, Amazon, and Alphabet under its Digital Markets Act (DMA), expressing concerns about their adherence to regulatory requirements.

Allegations and Targets

In a statement released on March 25th, the Commission expressed suspicion that the practices of these companies, referred to as “gatekeepers,” are not fully compliant with the DMA. Specific areas of focus include Alphabet’s handling of “steering” within the Google Play store and self-preferencing on Google Search, Apple’s rules related to steering in the App Store and Safari’s choice screen, and Meta’s controversial “pay or consent model.”

Additionally, Amazon’s marketplace ranking practices and Apple’s new fee structure for alternative app stores are under scrutiny.

Regulatory Measures and Penalties

The Commission has directed the corporations to keep specified documentation to guarantee proper implementation and compliance with their duties. The probe, which is expected to last 12 months, could result in fines of up to 10% of the firms’ global turnover if wrongdoing is discovered. Furthermore, systematic breaches may compel asset sales or limits on future acquisitions.

Digital Markets Act Overview

The Digital Markets Act aims to ensure fair and competitive settings in the digital industry, with significant platforms designated as “gatekeepers.” These gatekeepers, which include Alphabet, Amazon, Apple, ByteDance (parent company of TikTok), Meta, and Microsoft, are critical corporations whose power could restrict competition and innovation.

International Implications

This probe resembles the US Department of Justice’s previous legal action against Apple. The case, filed on March 21st, claims that Apple’s app market restrictions create a monopoly that stifles competition and innovation, particularly by forcing developers to utilize its payment system.

As worldwide scrutiny of tech giants’ practices grows, the findings of these investigations may have a substantial impact on the future landscape of digital marketplaces, affecting both industry players and consumers.

Image from Flickr

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