The European Commission has initiated investigations into Apple and Google for non-compliance with the new rules set by the Digital Markets Act. The Commission is concerned that these tech giants, referred to as ‘gatekeepers,’ are not fully adhering to the DMA. They impose restrictions on developers that limit their ability to communicate, promote offers, and directly conclude contracts, including imposing various charges.
Specifically, the EC is looking into Apple’s proposed fee structure for the App Store, which includes a core technology fee and restrictions on alternative marketplaces. Despite Apple’s efforts to comply with the DMA by reducing commissions and introducing new fees, the EC believes these measures may undermine the purpose of the DMA.
Year-long investigations will be conducted, with the EC aiming to conclude proceedings within 12 months. There are potential fines of up to 10% of a company’s total worldwide turnover for any infringement, increasing to 20% for repeated violations. Remedies such as breaking up parts of a company’s business or banning acquisitions related to non-compliance could also be imposed.
In addition to Apple and Google, the EC is investigating other ‘gatekeepers’ like Google, Meta, and Amazon for potential non-compliance. Google is being examined for self-preferencing its services in search results, while Apple’s uninstallation process and use of alternative services are under review. Meta’s ‘pay or consent’ model and Amazon’s potential preferential treatment of its products are also being scrutinized.
