The European Commission has expressed dissatisfaction with the way major IT companies, such as Apple, Google and Meta, are implementing the new digital rules. These companies run the risk of facing high fines.
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The Digital Markets Act (DMA) came into force on March 7, 2024, and web giants have started to comply with the new rules. For example, Apple now allows a publisher to launch its own app store, Google has removed links to Google Maps, and Microsoft allows certain apps to be uninstalled on Windows 11. These changes are just a few examples of the steps companies are taking to comply with the DMA.
However, the European Commission believes that several of the targeted players are not fully complying with their obligations under the new Digital Markets Act.
Investigations were therefore opened against Apple, Alphabet (parent company of Google), Meta and Amazonannounced the commission on March 25, 2024.
App Store, Google Play or even Meta payment model
The possible non-compliance with the requirements concerns, among other things, Apple's controversial rules for the App Store, Google's new rules for Google Play and its possible preference for its own search services, as well as the payment model of Meta for an ad-free version of Facebook and Instagram.
The European Commission is concerned that the measures taken by Google and Apple are not fully compliant with the DMA, as they involve various restrictions and limitations. These restrictions limit the ability of developers to communicate freely, advertise their deals, and enter into contracts directly, including charging various fees.
Additionally, Apple's new pricing structure and other terms and conditions for alternative app stores and distribution of apps from the Internet could defeat the purpose of the DMA's obligations.
High fines possible
The European Commission wishes to finalize the procedure now open within twelve months. Groups will certainly receive requirements in order to properly implement the DMA rules.
In the event of a violation, the Commission could impose fines of up to up to 10% of the company's annual global turnover. In case of repeated violations, these fines can go up to 20%. In case of systematic violations, a company can also be dissolved.
In short, business to follow.