European Commission opens non-compliance investigations under the DMA with Alphabet, Apple and Meta
- March 27, 2024
- 5:16 pm
On March 25th, 2024, the European Commission has opened non-compliance investigations under the Digital Markets Act (DMA) into Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari and Meta’s “pay or consent model”.
The Commission suspects that the measures put in place by these gatekeepers fall short of effective compliance of their obligations under the DMA. In addition, the Commission has launched investigatory steps relating to Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace. Finally, the Commission has ordered gatekeepers to retain certain documents to monitor the effective implementation and compliance with their obligations.
The Commission is concerned for example concerned that Alphabet’s measures implemented to comply with the DMA may not ensure that third-party services featuring on Google’s search results page are treated in a fair and non-discriminatory manner in comparison with Alphabet’s own services, as required by Article 6(5) of the DMA.
Next steps
The Commission intends to conclude the proceedings opened today within 12 months. If warranted following the investigation, the Commission will inform the concerned gatekeepers of its preliminary findings and explain the measures it is considering taking or the gatekeeper should take in order to effectively address the Commission’s concerns.
In case of an infringement, the Commission can impose fines up to 10% of the company’s total worldwide turnover. Such fines can go up to 20% in case of repeated infringement. Moreover, in case of systematic infringements, the Commission may also adopt additional remedies such as obliging a gatekeeper to sell a business or parts of it, or banning the gatekeeper from acquisitions of additional services related to the systemic non-compliance.
More information available from the Commission press release here.
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