EU could launch investigations into DMA compliance plans

The European Union’s new Digital Markets Act finally took effect last week, and that means the biggest companies in the technology industry were forced to comply. That includes the likes of Apple, Google, Meta, Microsoft, and more. These companies, designated as “gatekeepers” by the EU, are now subject to regulation. There is a financial incentive for the corporations to get it right, too. If they are not found to be in compliance, they could be heavily fined. The EU states that companies not found to be in compliance could be the subject of DMA investigations and fined up to 10% of their total revenue.

The following six companies are considered gatekeepers: Google, Apple, Amazon, Microsoft, Meta, and ByteDance. They have each had unique approaches to DMA compliance. In part, that’s because each company may have different obligations under the law. Gatekeepers have at least one “core platform service,” which the EU defines as those that are critical to business in the region. Different requirements may apply to each gatekeeper based on their core platform service. There is also some ambiguity here since the DMA is a new law that is yet to be tested.

However, it’s looking like the EU is likely to open investigations over the DMA. A report from Reuters predicts this, with a few caveats. The report says that EU regulators may only pick a few DMA investigations to pursue. “Microsoft, Amazon, and ByteDance may face less scrutiny initially as EU regulators focus their resources on one or two cases and ensure a case able to withstand a legal challenge, people familiar with the matter said,” per Reuters. This may be due to the time constraints related to the investigations, which stipulate regulators must report their findings in just one year.

Which companies could face EU investigations over the DMA?

That leaves Apple, Meta, and Google as the most likely targets for investigation. Apple might be the obvious choice because it has come under heavy fire for its DMA plans. It also has arguably been affected most by the DMA. That’s because the regulation forced it to open up iOS to third-party app stores, default browsers, and more. Apple has also been criticized for its new fee system, which heavily charges developers who use third-party distribution methods.

Another company that could face investigations is Google. No other company has more “core platform services” than Google, which has eight. Meta is also a possibility, as it wants to give users the option to opt into cross-platform data sharing. The truth is, that many companies don’t know exactly what the DMA requires. They might be testing the waters to find out what the true requirements are following investigations.