Explainer-Why is the EU probing Big Tech under the Digital Markets Act?

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LONDON : The European Union on Monday launched investigations into Alphabet, Apple and Meta for potentially breaching a landmark new law designed to prevent Big Tech having an unfair advantage over competitors.

FILE PHOTO: A 3D printed Google logo is placed on the Apple Macbook in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Violations could result in fines of as much as 10 per cent of a company's global annual turnover. The EU Commission hopes to wrap up the probes within a year.Two of the five investigations relate to Alphabet and Apple's payment systems, specifically around"anti-steering" behaviour. Beyond music streaming, the EU is now investigating whether Apple and Google have prevented even more consumers from accessing offers outside their control.In bricks-and-mortar retail, supermarkets sometimes sell cheaper own-brand alternatives on the shelves next to pricier goods.

The EU said on Monday it was also looking into whether Amazon was giving preference to its own products in its online store over rivals, but stopped short of launching an investigation.Under the DMA, Apple was supposed to make it easy for device users to uninstall software and change default settings, such as their go-to web browser or search engine.

In an attempt to comply with the rules, Meta introduced a"pay or be tracked" policy, which would charge consumers who do not consent to their data being collected and combined like this 9.99 euros for ad-free versions of the apps.

 

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