BRUSSELS, Belgium – The European Union has initiated investigations into major technology firms over potential anti-competitive practices, raising concerns about their adherence to the Digital Markets Act (DMA) implemented in 2022. Alphabet, the parent company of Google, along with Meta and Apple, are currently under scrutiny for their business practices that may breach EU regulations.

If found guilty, these tech giants could face hefty fines of up to 10% of their annual revenue. EU antitrust chief Margrethe Vestager and industry leader Thierry Breton jointly announced the opening of investigations to ensure fairness and competition in the digital marketplace.

The EU’s inquiry focuses on allegations that Apple and Alphabet are restricting anti-steering practices, making it challenging for apps to inform users about alternative payment methods that could potentially save them money outside of using the app stores’ designated payment systems. Furthermore, Meta is being investigated for potential violations related to charging users to prevent data from being utilized for advertising purposes.

Thierry Breton criticized the actions of these companies, stating that they have cornered European users into a dual choice between payment or consent, highlighting the need for a more transparent and inclusive digital ecosystem. Margrethe Vestager estimated that the investigations could span around 12 months, emphasizing the importance of ensuring compliance with the Digital Markets Act.

According to Vestager, preliminary assessments suggest that the proposed measures by the three tech companies may not align entirely with the DMA standards. This investigation aims to uphold fair competition and establish a level playing field in the European digital markets, ensuring the protection of consumer rights and promoting innovation in the tech sector.