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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 outcry forces US economist to drop top job

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Fiona Scott Morton, a highly qualified American economist, has decided not to take up the position of Chief Competition Economist in the European Commission following widespread criticism of her appointment. The strongest objections came from France, with President Emmanuel Macron expressing doubts and questioning whether there were no qualified European candidates for the role. Scott Morton, a Yale University economics professor, has an impressive background, including working in the US justice department’s antitrust department during the Obama presidency. However, she has also worked as a consultant for major tech companies like Apple, Microsoft, and Amazon, which raised concerns given that her job would involve regulating these digital giants.

EU antitrust chief Margrethe Vestager defended the appointment, highlighting Scott Morton’s corporate experience as an asset. Nevertheless, Scott Morton made the decision not to take up the post due to the political controversy surrounding her appointment and the importance of having the full support of the EU’s competition directorate. Opposition to her appointment came from various quarters, including President Macron and several Commission colleagues, as well as the four largest political blocs in the European Parliament. However, after discussions with Scott Morton, some concerns were addressed, and Philippe Lamberts of the Greens expressed support for her.

Critics argued that the criticism of Scott Morton’s appointment was unjustified since her role would primarily involve overseeing economic evidence in competition enforcement rather than favoring specific competitors. Nobel Prize-winning economist Jean Tirole praised her qualifications and stated that the European Commission was fortunate to have attracted someone of her caliber. Margrethe Vestager emphasized that the suggestion of bias based on nationality was questionable and clarified that Scott Morton would only need to recuse herself from a few cases.

Picture Courtesy: Google/images are subject to copyright