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The EU initiates investigations into Apple, Google and Meta under new digital competition law - WSJ

Published 03/25/2024, 07:32 PM
Updated 03/25/2024, 07:32 PM
© Reuters.

According to a report by The Wall Street Journal on Monday, the European Union has launched investigations into Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) under its new digital-competition law.

The reported move increases the regulatory scrutiny major US tech companies face worldwide. Only last week, the Justice Department sued Apple over antitrust allegations.

According to the WSJ, the various investigations announced Monday are the first under the EU's Digital Markets Act law, which took effect earlier this month.

The EU will now reportedly investigate how Apple is complying with rules requiring it to let app developers inform customers about alternative offers outside those companies' main app stores.

The WSJ revealed that the European Commission has expressed concern about the limitations tech companies place on developers' ability to communicate freely with users and promote offers.

They will also investigate modifications made by Google to how its search results are displayed in Europe.

The new digital competition law prohibits companies from giving preferential treatment to their own services over similar services offered by competitors.

Another investigation will assess how Apple follows rules requiring users to be able to easily remove software applications and change default settings on their iPhones.

Regarding Meta, the EU will reportedly look into what they describe as the company's "pay or consent" plan. Under the plan, European users can avoid Instagram and Facebook ads that target their digital activity by paying a monthly subscription fee of up to $11.

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