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After Apple's billion-euro fine: Amazon, Google and Meta are also facing adversity

26/3/2024

Translation: machine translated

The Digital Markets Act has been in force in the European Union since 6 March. Apple, Amazon, Google and Meta all appear to have slipped up when it came to implementation. Now they are facing fines running into billions.

The Digital Markets Act (DMA) is intended to prevent large tech companies from exploiting their market power. This law has been in force in the EU since 6 March.

Background information
Digital Markets Act (DMA): what actually is it?
by Florian Bodoky

However, four of the six gatekeeper companies appear to have slipped up in implementing the new rules. The measures taken do not go far enough for the EU Commission. It is therefore now investigating whether the companies have complied with the DMA. Specifically, the Commission is questioning this in the case of Apple, Amazon, Google and Meta. If this suspicion proves to be true, the companies could face fines totalling billions of euros.

Apple has already been sentenced and fined several billion euros. However, this is not yet final due to Apple's appeal.

Google: Play Store and Google Search criticised

In the case of Alphabet, Google's parent company, it is about the Play Store on Android devices. Google restricts app developers from sufficiently advertising their own products outside of the app store and providing them with the corresponding links to the products. Contract processing is also not possible without further ado. The EU criticises the fact that various fees are charged for this. Apple has to put up with the same criticism. The entire fee structure at both companies is now being investigated. Apple is also criticised for the fact that not all apps can be completely uninstalled.

Google's Play Store fees could become expensive.
Source: Shutterstock

Google search is also being investigated. The EU is of the opinion that the measures for the non-discrimination obligation of competitors are not sufficient. Google's own services would still be favoured.

Meta: "Pay or eat" is not a fair choice

Mark Zuckerberg's social media empire is also the subject of the EU investigation. The payment model that Meta has introduced is not a real solution. Not even with the proposed price reduction from ten to six euros. The Californian company waives the collection of personal data and the associated display of personalised advertising for the monthly amount. However, the DMA stipulates that users must be able to choose whether they wish to disclose their data - without having to pay for it.

Meta may need to make improvements when it comes to personalised advertising.
Source: Shutterstock

Facebook Messenger is also subject to the interoperability obligation. This means that you must be able to send messages from Facebook Messenger to other messengers - such as WhatsApp. This should have been implemented by 6 March, but Meta has now been given a six-month extension. Last but not least, Amazon is also in the EU's sights. It is investigating whether the trading platform's algorithm discriminates against competitors' products.

The next step is for the companies to document their approach and send these documents to the EU Commission. Depending on how the recipient assesses the procedure, the investigation will be pursued further. <p

Header image: Shutterstock

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Florian Bodoky

Editor

Florian.Bodoky@digitecgalaxus.ch

I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue.

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