EU Commission Investigates Google, Meta, and Apple for Non-Compliance with Digital Markets Act: Can Strict Regulations Prevent Big Tech’s Anticompetitive Practices?

The EU Commission has announced that it has launched an investigation into Google, Meta, and Apple for not complying with its new Digital Markets Act (DMA), which came into effect last year. The world’s largest digital companies were given until March 7 to make changes to comply with the regulation, but despite claims from these companies that they had made changes, the Commission remained unconvinced.

The traditional fines imposed on these companies in the past have not been effective in curbing their behavior. For example, the EU fined Apple 1.8 billion euros for abusing its dominant market position in the distribution of music streaming apps, but this amount was negligible compared to the company’s profits. The new Digital Markets Act gives the EU authorities the power to issue fines of up to 10 percent of a company’s global turnover for violations, which could have a more significant impact on these tech giants.

The regulation also includes structural remedies, such as forcing companies to sell certain parts of their business operations if they continue to violate the rules. The authorities can now intervene proactively to prevent anti-competitive practices and ensure a fair digital market. This approach is a departure from traditional competition laws that tend to intervene after the fact.

The new legislation aims to prevent dominant companies from stifling competition and innovation, as seen in the case of tech giants favoring their own services over competitors. For consumers, this can result in limited choices and potentially higher prices. By taking a proactive approach and implementing strict regulations, the EU hopes to level the playing field in the digital market and prevent abuses of power by these companies.

The ongoing legal battles in the US, such as the FTC’s lawsuit against Meta and Apple, highlight the challenges of regulating companies that have reached a dominant market position. The EU’s Digital Markets Act sets a precedent for proactive market regulation and could serve as a model for other countries. By enforcing these rules, the EU aims to protect consumers, promote fair competition, and prevent the consolidation of power by digital giants.

In conclusion, Google