The European Commission is set to conclude multiple investigations targeting major technology firms in the coming months. As U.S. tech giants advocate for a more hands-off regulatory approach in light of the impending Trump administration, we take a closer look at the current probes into these massive companies.
With the two-year anniversary of the EU Digital Markets Act (DMA) approaching, which aims to foster competitive practices within online platforms, several deadlines are unfolding for investigations involving U.S. tech behemoths like Apple, Meta, and Alphabet. Here, we explore the enforcement actions the European Commission has undertaken, as well as what the future holds under its new mandate and the second Trump administration.
Upcoming Challenges with the Trump Administration
In September 2023, the Commission named six key players as gatekeepers under the Digital Markets Act: Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft, which collectively oversee 22 core platform services specified by the legislation. Last year, Booking.com was also added to this list. These companies have until now had six months to align their practices with DMA requirements.
According to the DMA, these firms must provide increased choice and autonomy to both end users and business users. However, with Trump set to take office on January 20, new hurdles might arise for the Commission as the incoming Republican administration may challenge regulatory frameworks aggressively.
Several Big Tech leaders have expressed opposition to strict EU regulations, adjusting their policies in the U.S. If such changes extend to the EU, compliance with the DMA’s counterpart, the Digital Services Act (DSA), could be jeopardized. The DSA mandates platforms to combat illegal content and safeguard underage users online.
In a move to improve rapport, Meta’s CEO Mark Zuckerberg visited Trump shortly following his election victory in November. Recently, Meta announced plans to replace its fact-checking system in the U.S. with a community notes approach, similar to what Elon Musk implemented on his platform, X.
Changes in EU Commission Leadership
Henna Virkkunen, the EU Commissioner for Tech Sovereignty, Security, and Democracy, assured that despite these developments, the Commission remains steadfast in enforcing both the DSA and DMA regulations without delays. She stated, “Everyone conducting business within our jurisdiction must adhere to the rules. Our goal is to establish a fair and secure online environment.”
J. Scott Marcus from the Centre for European Policy Studies noted that the shift in U.S. administration may lead to heightened political tensions regarding the DSA, while the DMA largely involves the firms and the EU independently. He predicted that the Trump administration would frequently voice concerns about the DSA’s protections against misinformation within the EU.
On the EU side, leadership changes are notable: the DMA initiative was initially led by Margrethe Vestager, who has a history with significant competition cases. She is now succeeded by Spain’s Teresa Ribera, who also oversees climate and industrial responsibilities, leaving observers wondering about potential shifts in approach.
Daniel Friedlaender, a Senior Vice-President at tech lobby CCIA, argued that the DMA process had become “needlessly politicized,” moving away from its intended objectives towards more arbitrary decisions. He believes that a comprehensive review could refocus efforts on enhancing contestability and fairness in the market.
Status of Current Investigations
The Commission’s first DMA investigations commenced last year, with non-compliance inquiries initiated against Alphabet, Apple, and Meta in March. Preliminary findings have already been sent to Apple and Meta.
For Apple, the investigation revealed in June that the App Store rules violate the DMA by restricting app developers from directing consumers to alternative offers and content channels. Meanwhile, Meta faced scrutiny for its practice that forces users to choose between paying or relinquishing their data to access services, which was deemed inconsistent with DMA requirements.
Following these findings, the gatekeepers have the opportunity to respond. The Commission must issue a non-compliance decision within 12 months of opening the proceedings. If a breach is confirmed, firms could face fines up to 10% of their global turnover, escalating to 20% for repeated violations.
Additional investigations launched in March 2024 include inquiries into whether Alphabet favors its own services in search results, Apple’s barriers to alternative browsers, and possible preferential treatment of own-brand products by Amazon on its marketplace.
A further non-compliance inquiry was initiated against Apple regarding new contractual terms that restrict developers’ access to alternative app stores and distribution channels. A Commission representative reiterated last week that investigations are still in the technical phase, emphasizing the necessity of building strong cases for court success.
Photo credit & article inspired by: Euronews
