The European Commission earlier today announced that it has opened non-compliance investigations against Apple, Google, and Meta, under the new Digital Markets Act (DMA).
The Commission will probe into Apple’s rules on steering in the App Store and the choice screen for Safari, Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, and Meta’s “pay or consent model”.
The Commission has opened proceedings to assess whether the measures implemented by Alphabet and Apple in relation to their obligations pertaining to app stores are in breach of the DMA. Article 5(4) of the DMA requires gatekeepers to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.
The Commission is concerned that Alphabet’s and Apple’s measures may not be fully compliant as they impose various restrictions and limitations. These constrain, among other things, developers’ ability to freely communicate and promote offers and directly conclude contracts, including by imposing various charges.
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The Commission has opened proceedings against Apple regarding their measures to comply with obligations to (i) enable end users to easily uninstall any software applications on iOS, (ii) easily change default settings on iOS and (iii) prompt users with choice screens which must effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones.
The Commission is concerned that Apple’s measures, including the design of the web browser choice screen, may be preventing users from truly exercising their choice of services within the Apple ecosystem, in contravention of Article 6(3) of the DMA.
The Commission said it is also gathering information to clarify whether Apple’s new fee structure and other terms and conditions for alternative app stores and distribution of apps from the web may be defeating the purpose of its obligations under the DMA.
The Commission has also addressed retention orders to Alphabet, Amazon, Apple, Meta, and Microsoft, asking them to retain documents that may be used to assess their compliance with the DMA obligations. The Commission intends to conclude the proceedings opened today within 12 months.
In cases of infringement, the Commission can impose fines up to 10% of the company’s total worldwide turnover. Such fines can go up to 20% in case of repeated infringement under the DMA.
