The EU Commission has launched an investigation into Google, Meta, and Apple for failing to comply with the new Digital Markets Act (DMA), which took effect last year. Despite claims by these companies that they had made changes, the Commission remained unconvinced. The regulation aims to curb abuses of power by dominant companies in the digital market, including tech giants favoring their own services over competitors.
The traditional fines imposed on these companies in the past have not been effective in regulating their behavior. For example, the EU fined Apple 1.8 billion euros for abusing its dominant market position in music streaming apps distribution. However, 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. This approach is a departure from traditional competition laws that tend to intervene after the fact. By taking a proactive approach and implementing strict regulations, the EU hopes to level the playing field in the digital market and prevent abuses of power by these companies.
The ongoing legal battles in the US against Meta and Apple highlight the challenges of regulating companies that have reached a dominant market position. The EU’s Digital Markets Act sets a precedent for proactive market regulation and could serve as a model for other countries seeking similar outcomes. By enforcing these rules, the EU aims to protect consumers, promote fair competition and prevent consolidation of power by digital giants.
In conclusion, Google, Meta, and Apple are facing an investigation from the European Union Commission for failing to comply with its new Digital Markets Act (DMA). This regulation aims to bring these digital giants under control and ensure compliance with new regulations aimed at preventing dominant companies from stifling competition and innovation while promoting fair competition in
