The Digital Markets Act (DMA) has prompted the European Commission to initiate an investigation into the practices of Apple, Meta, Amazon, and Alphabet, the parent company of Google. In a statement released on March 25, the Commission expressed suspicions that these gatekeepers are not effectively complying with their obligations under the DMA.
The EU antitrust regulators are specifically targeting Alphabet’s rules on “steering” within the Google Play store and self-preferencing on Google Search. They are also examining Apple’s rules on steering in the App Store and the choice screen for Safari, as well as Meta’s “pay or consent model.” In addition, the Commission is investigating Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace.
To monitor the effective implementation and compliance with their obligations, the companies have been ordered to retain specific documents. The proceedings will take up to 12 months to conclude, and if infringement is found, the Commission has the authority to impose fines of up to 10% of the company’s total worldwide turnover. In cases of systematic infringement, the gatekeeper may be required to sell off parts of the company or be prohibited from acquiring additional services.
The DMA is a piece of legislation introduced by the EU to foster fair and competitive markets in the digital sector. Its aim is to regulate gatekeepers, which are defined as large digital platforms that have significant control over the digital economy, acting as a crucial connection between business users and consumers. The Commission has designated Alphabet, Amazon, Apple, ByteDance (the parent company of TikTok), Meta, and Microsoft as the six gatekeepers under the DMA. These companies were given until March 7 to fully comply with the DMA requirements.
This investigation follows a lawsuit filed by the United States Department of Justice (DOJ) on March 21 against Apple. The lawsuit alleges that Apple’s app market rules and alleged monopoly practices have unfairly limited competition and stifled innovation. It also claims that Apple has a monopoly in the smartphone market and forces developers to use its payment system, thereby locking them and users into its platform.