Why EU is reassessing tech investigations into Apple, Google, Meta
What's the story
According to the Financial Times, the European Commission is re-evaluating its probes into tech giants such as Apple, Google, and Meta. The move comes as these companies have appealed to US President-elect Donald Trump to contest the European Union's regulatory scrutiny. However, the FT says that Trump's election victory did not directly trigger this review process.
Potential changes
Review could alter scope of investigations
The ongoing review could result in a reduction or change in the scope of the investigations. It will cover all cases opened since March 2024 under the European Union's Digital Markets Act (DMA). The DMA is a strict regulation designed to limit tech giants' market dominance, with the authority to impose penalties of up to 10% of a company's annual revenue.
Ongoing work
EU to halt potential fines amid review
During the review process, all decisions and possible fines related to these cases will remain on hold. However, technical work on the cases will still continue, according to FT. The regulators are now waiting for political direction to make final decisions on the cases involving Google, Apple, and Meta. Neither of these tech giants nor the European Commission has responded to requests for comment on this development.
Regulatory intent
DMA aims to curb Big Tech's power
The DMA came into effect in 2022 with the goal of limiting Big Tech's power and maintaining a level playing field for smaller competitors. The move is part of the EU's larger effort to regulate tech giants and their market dominance. In related news, EU is considering an expansion of its investigation into whether Trump ally Elon Musk's social media platform X, breached its content moderation rules.