The European Commission pledges to initiate formal probes into Google Inc. and Alphabet Inc. to determine whether these enterprises qualify to abide by the newly enacted DMA. The agencies will take the following measures: examine the companies’ operations, including the recently hit new fees, terms, and conditions imposed on developers of the app store.
The EU has the right to make companies pay fines of up to 10% of the annual global revenue for not following the laws, and it can increase to 20% if the companies repeat it. By the end of 12 months, the committee expects to have completed all the investigations that concern its mandate.
The suggestions of Apple regarding altering double-sided commission and the creation of new STS, as a result, have extended the grief of many developers, such as Spotify. The EU will evaluate whether these actions would be compliant with DMA’s key principles, which are about ensuring fair competition in the digital markets.
The commission may also go through Meta Platforms Inc.’s plan. It will have to assess if it complies with the guidelines of DMA in relation to an available monthly subscription fee for ad-free access to Facebook and Instagram.
At the same time, the company is under a lawsuit from the US Justice Department plus 16 state attorney generals, as well as the antitrust complainants, as fiscal losses are due to the allegations of Apple’s monopoly on iPhone features.
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