The European Union has recently launched investigations into tech giants Apple, Google, and Meta, the parent company of Facebook, for suspected violations of the Digital Markets Act (DMA). The DMA, which aims to promote competition in the digital services market, requires dominant online platforms to provide users with more choices and competitors with more opportunities.
Violations of the DMA could result in heavy fines, with penalties of up to 10% of a company’s global revenue and 20% for repeat offenses. The practices under investigation include Meta’s “pay or consent” approach and concerns about the app stores operated by Apple and Google.
Specifically, Apple and Google are being scrutinized for potentially not allowing app developers to freely communicate with end-users and promote offers without charges. Apple’s “choice screen” for Safari and Google’s handling of third-party services in search results are also under examination.
The investigation under the DMA may not stop with just these three tech giants. Companies like Amazon, Microsoft, and ByteDance could potentially face similar scrutiny in the future.
In response to the investigations, the companies have stated that they are engaging constructively with the European Commission and making changes to ensure compliance with the new law. It remains to be seen how the investigations will unfold and what impact they will have on the digital services market in the European Union. Stay tuned to Matzav Blog for updates on this developing story.
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