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Apple, Meta and Google to be investigated by the EU

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The European Union has initiated investigations into major tech companies such as Meta, Apple, and Alphabet (Google’s parent company) over potential violations of the Digital Markets Act (DMA) introduced in 2022. If found guilty, these companies could face fines of up to 10% of their annual turnover.

EU antitrust chief Margrethe Vestager and industry head Thierry Breton announced the investigations, focusing on allegations of anti-competitive practices by these tech giants. The DMA, which targets companies considered to be digital gatekeepers, aims to foster fair competition in the digital market.

The investigations are particularly focused on whether these companies are impeding fair competition, such as by limiting app communication with users, restricting user choice, or favoring their own services in search results. For instance, Apple faces scrutiny for its App Store policies, while Meta is being investigated for its advertising practices.

These investigations come shortly after Apple was fined €1.8 billion for competition law violations related to music streaming, and amid a landmark lawsuit in the United States accusing Apple of monopolizing the smartphone market.

Both Apple and Meta have responded, expressing willingness to engage with the investigation and asserting their compliance with the DMA. However, Alphabet has yet to comment on the matter.

The EU aims to complete the investigations within approximately 12 months, with a focus on ensuring open and contestable digital markets in Europe. The timing of these actions, just ahead of European Parliament elections, underscores the EU’s commitment to consumer protection and fair competition in the digital sphere.

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European Super League: Uefa and Fifa rules banning breakaway league unlawful, says court

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The European Court of Justice (ECJ) has ruled that banning football clubs from joining a European Super League (ESL) was unlawful, asserting that UEFA and FIFA were “abusing a dominant position.” The case was brought by the ESL and its supporters, who argued that UEFA and FIFA were violating competition law by threatening sanctions against those participating in the breakaway league.

The ECJ, the highest court in the European Union, found against UEFA and FIFA, stating that this did not automatically approve a breakaway league. This decision is perceived as a setback to the authority of UEFA and FIFA in governing the game.

UEFA expressed confidence in the strength of its rules implemented since the ESL proposal, assuring compliance with relevant European laws. They trust that football’s existing structure will be protected against breakaway threats by European and national laws.

Barcelona, one of the original ESL clubs, sees the verdict as paving the way for a new competition. ESL backers A22 have released revised proposals, including a women’s European tournament with a league system involving promotion and relegation for both men’s and women’s competitions.

The initial ESL, designed as a midweek competition with 12 founding clubs, faced backlash for exclusive privileges and perceived greed, leading to widespread protests. The ECJ report emphasizes that FIFA and UEFA must ensure transparent, objective, non-discriminatory, and proportionate powers when new competitions potentially enter the market.

The report states that FIFA and UEFA, lacking such criteria, are abusing a dominant position, and their rules on approval, control, and sanctions are unjustified restrictions on the freedom to provide services. However, the ruling does not specifically address the approval of the Super League project.

Bernd Reichart, CEO of A22, claims the ESL has won the right to exist, asserting that UEFA’s monopoly is over, and clubs are now free from sanctions and able to determine their future. Real Madrid, still interested in the ESL, welcomed the ruling, stating that clubs are now the “masters of their own destiny.”

The ESL controversy began in April 2021, involving 12 teams, including English giants. Despite initial fines by UEFA, the plans collapsed within 72 hours due to widespread condemnation. Real Madrid and Barcelona remain interested in the ESL, while La Liga emphasizes the need for an open format in European football.

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