08:44 AM EDT, 03/25/2024 (MT Newswires) -- Apple ( AAPL ) and other big tech companies are facing an investigation by the European Union's executive arm for potentially breaching its sweeping new digital competition law.

The European Commission on Monday launched a probe into the iPhone maker, Facebook parent Meta Platforms ( META ) and Google ( GOOG ) parent Alphabet (GOOG, GOOGL) under the Digital Markets Act, which came into effect earlier this month. The law aims to ensure a level playing field in the digital sector by requiring "gatekeepers," which provide services like search engines and app stores, to comply with specified guidance.

Shares of all three technology giants were down in premarket trading.

The investigation will specifically look into Apple's ( AAPL ) and Alphabet's steering rules in their App Store marketplace and Google Play service. Under the act, gatekeepers are required to allow app developers to inform consumers about alternative offers outside their main app stores, free of cost.

The commission said it is concerned that both companies may be imposing restrictions and limitations on developers' ability to freely communicate with users and promote their offers. The regulator will also examine whether Apple ( AAPL ) is ensuring that users can easily remove software applications and change default settings on their iPhones, and whether Google ( GOOG ) search results give preference to its own services over rivals.

Meta's ad-free subscription model for Facebook and Instagram in Europe will also be under scrutiny, while the bloc will be gathering information to clarify whether Amazon.com ( AMZN ) may be giving priority to its own brand products on the Amazon Store.

"We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market," said Thierry Breton, commissioner for internal market. "But we are not convinced that the solutions by Alphabet, Apple ( AAPL ) and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses."

The commission aims to complete its investigation within 12 months, while the companies could face fines of up to 10% of their worldwide turnover if found guilty. The penalties could increase to 20% if repeated violations have taken place, according to the regulator.

"We have engaged with the European Commission, stakeholders and third parties in dozens of events over the past year to receive and respond to feedback, and to balance conflicting needs within the ecosystem," A spokesperson for Google ( GOOG ) told MT Newswires in an email. "We will continue to defend our approach in the coming months." Apple ( AAPL ) and Meta didn't immediately respond to a request for comment.

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