On March 25, 2024, the European Commission announced that it had opened non-compliance investigations under the Digital Markets Act (DMA) into Alphabet Inc., Apple Inc., and Meta Platforms, Inc. The Commission highlighted that the investigations into the gatekeeping organizations concern Alphabet's rules on steering in Google Play and self-preferencing on Google Search, Apple's rules on steering in the App Store and choice screen for Safari, and Meta's 'pay or consent model.'

Regarding the steering rules, the Commission outlined that Article 5(4) of the DMA requires gatekeeping platforms to allow app developers to 'steer' consumers to offers outside the gatekeepers' app stores, free of charge.

In addition, the Commission noted that Alphabet's third-party services featured on Google's search results may not be treated in a fair and non-discriminatory manner, as required by Article 6(5) of the DMA. Apple's self-preferencing tools, namely the possibility of easily uninstalling apps on iOS, easily changing default settings on iOS, and allowing users to select an alternative default service, may be in contravention of Article 6(3) of the DMA.

Notably, regarding Meta's 'pay or consent' model, the Commission stipulated that it has opened a formal investigation on whether the service is compliant with Article 5(2) of the DMA, which requires gatekeepers to obtain consent from users when they intend to combine or cross-use their personal data across different core platform services. The Commission detailed its concern that the binary choice in the 'pay or consent model' may not provide a real alternative in case users do not consent.

Finally, the Commission also mentioned that it is taking investigatory steps to clarify whether:

• Amazon.com, Inc. may be in contravention of 6(5) of the DMA; and
• Apple may be in contravention of Article 6(4) of the DMA for its fee structure.

What are the next steps?

The Commission outlined that it aims for the proceedings to conclude within 12 months.

You can read the press release here.