Apple, Google, and Meta Face Potential Billion-Dollar Fines From European Commission Over Market Violations

By Thea Felicity

Mar 25, 2024 09:57 AM EDT

RUSSIA-US-BRITAIN-INTERNET-FACEBOOK — A man holds a smart phone with the icons for the social networking apps Facebook, Instagram and Twitter seen on the screen in Moscow on March 23, 2018. - A public apology by Facebook chief Mark Zuckerberg, on March 22, 2018 failed to quell outrage over the hijacking of personal data from millions of people, as critics demanded the social media giant go much further to protect privacy.
(Photo : Photo by KIRILL KUDRYAVTSEV/AFP via Getty Images)

Earlier this year, the European Union questioned Apple over its "unfair" market prices and received a $2 billion fine.

A recent update from Canadian Pres via Yahoo reveals that European Union regulators will not just launch investigations into Apple; Google and Meta are also part of enforcing a new law to prevent the domination of digital markets.

The European Commission, known as the administrative arm of the 27-nation bloc, revealed that the tech giants are under scrutiny for potential violations of the Digital Markets Act (DMA)-the first cases under this new legislation.

What does the Digital Markets Act have to do with Apple, Google, and Meta's Market Violations

The DMA, which recently came into full force, is a comprehensive regulatory framework targeting major tech companies acting as "gatekeepers" of core platform services.

Similar to how the European Commission fined Aplpe, other tech giants of this caliber are mandated to adhere to a set of regulations, with penalties ranging from billion-dollar fines to potential business dissolution. The overarching objective is to foster fairer and more competitive digital markets by dismantling closed ecosystems that restrict consumer choices.

Google faces additional scrutiny for potentially favoring its services over competitors on its search results page, which may violate DMA provisions prohibiting such bias.

Meanwhile, Meta is being probed for its ad-free subscription model in Europe. The Commission is apprehensive that Meta's subscription-based alternative may not adequately address data privacy concerns, potentially undermining the DMA's objectives.

European Commission's Vice President Margrethe Vestager, who's responsible for the competition, stated that the mentioned companies have been instructed to retain specific documentation accessible for ongoing and future inquiries.

Besides found violations, regulators are particularly focusing on whether Google and Apple are upholding the Digital Market Act's regulations that allow app developers to guide users to cheaper alternatives outside their app stores.

"Today, we decided to investigate a number of these suspected non-compliance issues. And as we unearth other problems, we will tackle those too," said Vestager.

This is after complaints have arisen regarding alleged restrictions and recurring fees imposed by these tech giants, hindering app promotion.

The European Commission aims to conclude its investigations within a year.