BRUSSELS, March 21 (Reuters) - Apple ( AAPL ), Meta
Platforms ( META ) and Alphabet's Google are set to be
investigated for potential violations of the European Union's
Digital Markets Act (DMA) that could lead to hefty fines by the
end of the year, according to people with direct knowledge of
the matter.
The European Commission will likely announce the
investigations, either at the same time or one after the other
rapidly, in the coming days and issue decisions before EU
antitrust chief Margrethe Vestager's term ends in November, they
said.
DMA breaches could cost the companies as much as 10% of
their global annual turnover. The landmark EU tech rule requires
companies to give users and rivals more choices to ensure a
level playing field.
The Commission declined to comment. Apple ( AAPL ), Meta and Google
did not immediately respond to requests for comment.
Earlier this week, Vestager in an interview told Reuters
Apple and Meta's new fees for their services may hinder users
from enjoying the benefits of the DMA, and that this was going
to be part of any investigation.
She also singled out tactics used by some companies to
disparage rival products or services to discourage users
switching to them, saying it was unwise for companies to do so.
Vestager also said she wanted to speed up any DMA
investigations, aiming to get decisions out preferably in six
months so that users and apps developers can see the fruits of
the new rules soon. Traditional EU antitrust probes in contrast
take years.
Rivals of the three companies have shared frustrations with
the EU competition enforcer, saying measures announced by the
companies to re-wire their core platform services are
inadequate.
The DMA requires the three companies, as well as Microsoft ( MSFT )
, Amazon.com ( AMZN ) and TikTok owner ByteDance to
allow users to remove any pre-installed software or app if they
want, and to get users' consent to use their data across their
various services or for personalised ads.
The companies are not allowed to favour their services or
products over rivals on their platforms.
Bloomberg was the first to report the imminent DMA
investigations into Apple ( AAPL ), Meta and Google.