The European Union has initiated investigations into major tech companies for potential anti-competitive behavior. Meta, Apple, and Alphabet (Google’s parent company) are under scrutiny for potential violations of the Digital Markets Act (DMA) introduced in 2022. If found guilty, these companies could face significant fines, up to 10% of their annual turnover. Margrethe Vestager, the EU’s antitrust chief, and Thierry Breton, the industry head, announced the investigations on Monday.

Only six companies fall under the DMA’s obligations, and they happen to be the world’s largest tech firms: Alphabet, Apple, Meta, Amazon, Microsoft, and ByteDance. Despite their global presence, none of these companies are based in Europe; five are headquartered in the US, while ByteDance is based in Beijing. This move comes shortly after the EU fined Apple €1.8 billion for violating competition laws in the music streaming sector.

The investigations are focused on five potential areas of non-compliance:
1 & 2 – Apple and Alphabet’s alleged restriction of apps from communicating freely with users and making contracts with them.
3 – Apple’s purported lack of user choice.
4 – Meta’s alleged unfair practice of requiring payment to avoid using personal data for advertising.
5 – Google’s suspected preference for its own goods and services in search results.

The EU specifically mentioned concerns about “anti-steering,” where these firms allegedly make it challenging for apps to inform users about cheaper ways to use their services outside of app stores’ payment methods. Additionally, Apple is accused of not providing enough choice for users to uninstall apps, change default settings, and use alternative browsers or search engines.

Margrethe Vestager estimates that the investigations will take approximately 12 months to complete, though Thierry Breton suggested it could take longer. The EU’s actions are seen as consumer-focused and timely, especially with European Parliament elections scheduled for June 2024. This move has been interpreted as a strong signal from the EU, indicating its commitment to ensuring fair competition in digital markets.