The European Commission (EU) has accused Google and Apple of violating its digital rules.
On Wednesday, the Commission alleged that the two tech giants failed to comply with the Digital Markets Act (DMA) regarding a range of services for which the companies were designed as gatekeepers.
The DMA is a set of rules that aims to ensure fair markets in the digital sector by regulating large digital platforms that provide connectivity between business users and consumers and whose position can grant them the power to create a regulatory bottleneck in the digital economy.
The Commission stated that certain features and functionalities of Google Search treat Alphabet’s services more favourably than competing services, disrupting the transparency and non-discriminatory treatment of third-party services.
According to the Commission, Alphabet’s services, such as shopping, hotel booking, transport or financial and sports results, are more favoured in Google Search results than similar services offered by third parties.
It also stated that Alphabet’s app market, Google Play, is not compliant with the DMA, as app developers are prevented from freely directing consumers to other channels for better offers.
Apple was accused of blocking the transparency and effectiveness of the process it has designed for developers interested in achieving interoperability with iPhone and iPad features, with the Commission saying it will adopt measures under the DMA to address this.
Measures will include improved access to technical documentation on features not yet available to third parties, timely communication with developers, and a predictable timeline for reviewing interoperability requests.
Apple and Google will have to overhaul some of their key products if they want to avoid an injunction or fines of up to 10 per cent of their global turnover, the Commission said.
Both Alphabet and Apple were designated as a gatekeepers under the DMA by the European Commission on September 5, 2023.
Henna Virkkunen, executive vice president for technology sovereignty, security and democracy at the European Commission, emphasised that online search engines are the gateway through which users discover and find information, products and services..
She commented on the sentence: “Both practices negatively impact many European and non-European businesses that rely on Google Search or Google Play to reach their users in the EU.”
She added: “Ensuring that Alphabet fully complies with the DMA is key to ensure business and innovation opportunities for all providers of digital services.”
Google and Apple did not immediately respond to requests for comment.
