Bloomberg recently reported that Apple and Google are set to undergo a full-scale investigation by the European Union (EU) to determine whether they are complying with the new Digital Markets Act, an investigation that could result in significant fines for both tech giants.
The European Commission is expected to announce the investigation in the coming days, focusing on whether Apple and Google are complying with the EU's Digital Markets Directive.
Additionally, sources say the EU will scrutinize Apple and Google's new fees, terms and conditions for app developers, while Meta's proposal to charge users a monthly fee for accessing Facebook and Instagram could also attract the attention of European regulators.
Investigations show Big Tech faces growing regulatory pressure. (Photo: digitalinformationworld)
The EU's Digital Single Markets Act, which came into full force on March 7, has put big tech companies like Apple under intense scrutiny. The law sets out a set of rules for the world's largest tech platforms, empowering the EU to impose fines of up to 10% of a company's annual global revenue, and up to 20% for repeat offenders.
The law aims to ensure fair competition in digital markets and prevent anti-competitive practices by tech giants. Notably, Apple recently faced a massive €1.84 billion fine from the EU for allegedly preventing music streaming service Spotify from informing users about cheaper subscription options.
In parallel with the EU’s action, the US Department of Justice and 16 state and regional attorneys general have joined forces to file an antitrust lawsuit against Apple. The lawsuit accuses Apple of illegally monopolizing the smartphone market, creating yet another legal challenge for the tech giant.
Moreover, these legal actions underscore the growing global regulatory scrutiny facing large tech companies like Apple and Google. It also signals a shift toward closer scrutiny of their market practices.
The impending investigations by both the European Union and the United States highlight a pivotal moment for big tech companies, as they face increasing regulatory pressure to promote fair competition, protect consumer rights, and curb monopolistic practices in the digital landscape.
As these investigations unfold, the results will not only impact the future operations of Apple and Google, but also set a precedent for legal action against other tech giants around the world.
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