The European Union (EU) is investigating Meta, Alphabet (Google), and Apple for potential violations of the Digital Markets Act (DMA).

This investigation focuses on the app store and search engine practices of these companies.

Alphabet’s Google: The EU is examining Google’s steering practices in the Google Play app store, where it allegedly directs users to its own services within the app.

Additionally, the EU is investigating the self-preferencing of Google search results, where Google’s services are favored over competitors.

Apple’s App Store: Similar to Google, the EU is investigating Apple’s steering practices in its App Store, where it also allegedly directs users to its services.

Furthermore, the EU is examining Apple’s choice screen for its Safari browser, where it offers a limited selection of search engines.

Meta’s ‘Pay or Consent’ Model: The EU is scrutinizing Meta’s practice of offering users a choice between paying for an ad-free experience or continuing with the current model where their data is shared for advertising purposes.

Significance for the Companies: The EU investigation is a significant development, as it could potentially impact the companies’ revenue and business strategies.

For example, if the companies are found to be violating the DMA, they may face substantial fines or be forced to alter their practices.

Global Implications: This investigation is not isolated to the EU.

It serves as a warning to other countries and regions that are considering antitrust actions against big tech companies.

The US, in particular, has been pursuing antitrust lawsuits against Meta and Google.

Impact on Investors: The news of the EU investigation has negatively affected the stock prices of Meta, Alphabet, and Apple in pre-market trading.

This indicates that investors are concerned about the potential impact of regulatory actions on these companies’ profitability.

Dominance in App Stores Raises Competition Concerns

The EU is investigating Google and Apple for allegedly directing users to their services within their app stores, raising concerns about competition and consumer choice.

Search Engine Bias Under Scrutiny

Google’s self-preferencing of search results is also being examined, as it gives an unfair advantage to its services over competitors.

Global Antitrust Landscape Shifts

The EU investigation is a signal to other countries considering antitrust actions against big tech companies, potentially shaping the global regulatory landscape.