EU Freezes DMA Investigations into Apple, Google and Meta and Other Big Tech Companies

The European Commission has paused Big Tech investigations under the Digital Markets Act, citing the need for a comprehensive enforcement review.

The European Commission has suspended decisions on major investigations into Apple, Google, and Meta under the Digital Markets Act (DMA), initiating a detailed review of its enforcement strategy.

The cases which have targeted alleged monopolistic practices by these companies since March 2024, remain unresolved as the Commission examines whether its current approach aligns with regulatory goals and geopolitical dynamics.

This pause, as reported by the Financial Times, comes as U.S. President-elect Donald Trump prepares to assume office, prompting intensified lobbying from Silicon Valley leaders against what they perceive as excessive European oversight.

While the Commission denies any direct connection between Trump’s election and the review, officials acknowledge the broader political implications of his administration for regulatory enforcement.

The decision to reassess these high-profile cases reflects growing concerns over the technical and legal complexity of enforcing the DMA. The Act, a cornerstone of the EU’s digital regulation framework, aims to curb the dominance of “gatekeepers” in the tech sector by mandating greater competition and transparency.

Investigations on Hold Amid Political and Technical Challenges

The ongoing cases, which focus on practices such as Google’s app store prioritization, Apple’s restrictions on third-party app distribution, and Meta’s handling of user data for targeted advertising, have been put on hold during the review.

Although technical work on these cases will continue, no fines or rulings will be issued until the Commission concludes its reassessment.

An EU spokesperson emphasized the importance of ensuring robust legal grounds for these decisions, stating, “There is no delay in finalising the opened non-compliance cases, and especially not due to any political considerations,” an EU spokesperson said. The ongoing cases were “not yet ready at technical level,” the spokesperson added, arguing that such investigations took time because of their complexity, novelty, and the “need to ensure that commission decisions are legally robust.”

The DMA, which came into effect in 2022, has introduced stringent obligations for designated gatekeepers, including bans on self-preferencing and requirements for interoperability.

Apple, for instance, has implemented changes allowing alternative app stores and third-party payment systems. Similarly, Google has introduced browser choice screens in the European Economic Area. However, both companies’ efforts have been criticized as insufficient to fully meet the DMA’s objectives.

Silicon Valley’s Lobbying Efforts and Trump’s Role

The review coincides with increased lobbying by U.S. tech leaders, including Meta CEO Mark Zuckerberg, who has called on Trump to intervene against EU fines.

“EU regulators have forced us to pay more than $30bn in penalties over the past 20 years,” Meta CEO Mark Zuckerberg said on Friday. Zuckerberg said, highlighting the financial burden imposed on American tech companies.

Zuckerberg’s statements underscore the growing tension between the EU’s regulatory ambitions and the interests of U.S.-based technology firms. With Trump signaling a preference for lighter regulation, his administration could complicate the EU’s efforts to enforce the DMA.

A senior EU diplomat expressed concerns about these pressures, stating, “It’s going to be a whole new ballgame with these tech oligarchs so close to Trump and using that to pressurize us. So much is up in the air right now.”

Expanding Scrutiny Under the Digital Services Act

While the DMA remains central to the EU’s regulatory framework, the Commission is also evaluating compliance with the Digital Services Act (DSA), which governs online content moderation.

Elon Musk’s social media platform X is under investigation for potential violations of the DSA, adding another layer of complexity to the EU’s regulatory agenda.

The DSA complements the DMA by addressing issues such as harmful content and transparency in digital platforms. Both Acts represent the EU’s broader strategy to create a fair and accountable digital ecosystem, yet they have faced criticism for their potential to stifle innovation and complicate compliance for tech companies.

Lawmakers Call for Regulatory Resolve

Despite the challenges, EU lawmakers have urged the Commission to maintain its enforcement priorities. Stephanie Yon-Courtin, a member of the European Parliament who helped draft the DMA, emphasized the importance of adhering to regulatory objectives.

In a letter to Commission President Ursula von der Leyen, she wrote, “The DMA cannot be taken hostage. Please reassure me that your cabinet and yourself are fully supporting the effective implementation of the DMA, without further delay.”

Yon-Courtin’s remarks reflect a broader sentiment within the EU to resist external pressures and ensure that the DMA fulfills its intended purpose of leveling the digital playing field.

What the Review Means for Big Tech

The outcome of this review will have far-reaching implications for Apple, Google, and Meta, as well as for the global regulatory environment. With internal changes within the European Commission, including the departure of key figures like Margrethe Vestager, the reassessment signals a potential recalibration of the EU’s approach to digital regulation.

While the Commission insists that its commitment to the DMA remains unchanged, the pause in investigations raises questions about the future trajectory of EU enforcement.

Markus Kasanmascheff
Markus Kasanmascheff
Markus has been covering the tech industry for more than 15 years. He is holding a Master´s degree in International Economics and is the founder and managing editor of Winbuzzer.com.

Recent News

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
0
We would love to hear your opinion! Please comment below.x
()
x