Apple and Google to face EU Digital Markets Act compliance investigation

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Bloomberg recently reported that Apple and Google are set to undergo a comprehensive investigation by the European Union to determine their compliance with the new law aimed at curbing the power of major technology companies. This investigation could potentially lead to significant fines for both companies. The European Commission is expected to announce this investigation in the coming days, focusing on whether Apple and Google have adhered to the EU’s Digital Markets Act Directive. Additionally, sources have indicated that the EU will scrutinize Apple and Google’s new fees, terms, and conditions for app store developers, while Meta’s proposal to charge users a monthly fee for accessing Facebook and Instagram may also attract regulatory attention.

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EU Digital Markets Act

EU Scrutiny on Tech Giants

The EU’s Digital Markets Act, which came into full effect on March 7, has put major tech companies like Apple under intense scrutiny. This legislation outlines a set of regulations for the largest tech platforms globally, empowering the EU to impose fines of up to 10% of a company’s global annual revenue and up to 20% for repeated violations. The Act aims to ensure fair competition in digital markets and prevent anti-competitive practices by tech giants. Notably, Apple faced a hefty fine of 1.84 billion euros from the EU for allegedly impeding music streaming service Spotify from informing users about cheaper subscription options.

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Legal Challenges for Apple

In parallel with the EU’s actions, the U.S. Department of Justice and 16 state and regional attorneys general have joined forces to file an antitrust lawsuit against Apple. The lawsuit accuses Apple of unlawfully monopolizing the smartphone market, adding another layer of legal challenges for the tech giant. Furthermore, these legal actions underscore the growing global regulatory scrutiny faced by major tech companies like Apple and Google. It also signals a shift towards stricter oversight of their market practices.

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The impending investigations by both the European Union and U.S. authorities highlight a pivotal moment for big tech firms as they navigate increased regulatory pressure aimed at fostering fair competition, protecting consumer rights, and curbing monopolistic behaviours in the digital landscape. As these investigations unfold, the outcomes will not only impact the future operations of Apple and Google but also set precedents for regulatory actions against other tech giants worldwide.

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The impending investigations by the European Union mark a critical juncture for major tech companies like Apple and Google. They face heightened regulatory scrutiny to promote fair competition, safeguard consumer interests, and address monopolistic practices in the digital realm. These legal challenges underscore a global trend towards stricter oversight of big tech firms. It also reflects a shift towards more stringent regulation of their market behaviours. The outcomes of these investigations will not only shape the future operations of Apple and Google but also establish precedents for regulatory actions against other tech giants on a global scale.

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