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What\u2019s the collective noun for investigations on Big Tech? Because the European Union has just announced a pile of probes on gatekeepers designated under the Digital Markets Act<\/a> (DMA). Alphabet\/Google, Apple and Meta are facing the first formal non-compliance investigations under the bloc\u2019s rebooted ex ante competition rulebook.<\/p>\n Alphabet\/Google\u2019s rules on steering in Google Play and its approach to self-preferencing in search results are in the frame. For Apple, the EU is also looking at its rules on steering in the App Store and the design of choice screens for alternatives to its Safari web browser. While Meta\u2019s \u201cpay or consent\u201d model will be scrutinized by the Commission.<\/p>\n The three gatekeepers, which were designated under the pan-EU regulation last fall<\/a>, face formal investigation in these areas to determine whether they are breaching the rulebook, as the Commission suspects. Confirmed violations of the DMA can results in fines of up to 10% of global annual turnover, or even 20% for repeat offences.<\/p>\n The EU will have up to 12 months to conclude the investigations. A preliminary report can be produced within six months.<\/p>\n The enforcement action by the bloc comes as antitrust scrutiny continues to dial up<\/a> on the three US firms on home turf, too.<\/p>\n Since the three companies unveiled their DMA compliance plans there has a range of criticism that the proposals do not comply with the new EU law.<\/p>\n For example Google has been accused of seeking to avoid the regulation\u2019s ban on self preferencing by launching new rich features in search results that compete unfairly with rivals<\/a>. While Apple\u2019s use of notifications to users warning them of risks of stepping outside its walled garden have been attacked by developers<\/a> as \u201cscare screens\u201d. And Meta\u2019s \u2018pay or be tracked\u2019 tactic has been roundly condemned as exploitative abuse by privacy and consumer rights groups<\/a>. (Earlier this month the Commission sent Meta questions about this<\/a> under the DMA\u2019s sister regulation, the Digital Services Act, too.)<\/p>\n \u201cThe 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 \u201csteer\u201d consumers to offers outside the gatekeepers\u2019 app stores, free of charge,\u201d the Commission wrote, saying it\u2019s concerned the pair\u2019s steering measures \u201cmay not be fully compliant as they impose various restrictions and limitations\u201d, pointing for example to constraints on developers\u2019 ability to \u201cfreely communicate and promote offers and directly conclude contracts\u201d.<\/span><\/p>\n On concerns about Google self preferencing the EU said the investigation will focus on Google\u2019s vertical search services (e.g., Google Shopping; Google Flights; Google Hotels) and the impact its action may have on similar rival services.<\/p>\n \u201cThe Commission is concerned that Alphabet\u2019s measures implemented to comply with the DMA may not ensure that third-party services featuring on Google\u2019s search results page are treated in a fair and non-discriminatory manner in comparison with Alphabet\u2019s own services, as required by Article 6(5) of the DMA,\u201d it wrote.<\/p>\n On Apple, the EU will also look at whether it\u2019s complying with a range of user choice obligations on iOS \u2014 including enabling end users to easily uninstall apps; easily change default settings; and prompt users with choice screens which it says \u201cmust effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones\u201d.<\/p>\n \u201cThe Commission is concerned that Apple\u2019s 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,\u201d it added.<\/p>\n On Meta, the EU said the proceedings will investigate whether its recently introduced \u201cpay or consent\u201d model for EU users complies with Article 5(2) of the DMA, noting that this portion of the regulation \u201crequires gatekeepers to obtain consent from users when they intend to combine or cross-use their personal data across different core platform services\u201d.<\/p>\n \u201cThe Commission is concerned that the binary choice imposed by Meta\u2019s \u2018pay or consent\u2019 model may not provide a real alternative in case users do not consent, thereby not achieving the objective of preventing the accumulation of personal data by gatekeepers,\u201d it said.<\/p>\n Commenting in a statement, Margrethe Vestager, the Commission EVP in charge of competition policy, said: \u201cWe suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA. We will now investigate the companies\u2019 compliance with the DMA, to ensure open and contestable digital markets in Europe.\u201d<\/p>\n \u201cThe Digital Markets Act became applicable on 7 March. We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market. But we are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses,\u201d added Thierry Breton, internal market commissioner, in another supporting statement. \u201cShould our investigation conclude that there is lack of full compliance with the DMA, gatekeepers could face heavy fines.\u201d<\/p>\n