EU Commission Launches Investigation against Tech Giants for Non-Compliance with Digital Market Regulation

New investigation proves EU’s commitment to regulating digital giants

The EU Commission wasted no time in enforcing its new digital market regulation, the Digital Markets Act (DMA), which came into effect 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. Despite claims from these companies that they had made changes, the Commission remained unconvinced.

On Monday, March 25, 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 the EU authorities the 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 the rules. The 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 ongoing legal battles in the US highlight the challenges of regulating companies that have reached a dominant market position. However, by taking a proactive approach and implementing strict regulations, such as those outlined in its Digital Markets Act, Europe hopes to protect consumers from being stifled by powerful technology companies and promote fair competition in

Leave a Reply