European regulators have launched a series of probes into big tech companies, with Meta’s Facebook and Instagram potentially facing hefty fines under the EU’s Digital Services Act (DSA) due to concerns surrounding the protection of children. In response to these actions, here are some of the steps taken by European watchdogs against major technology players.
The European Union has been actively investigating tech giants such as Microsoft, who are working to resolve antitrust issues related to its chat and video app Teams, a part of its Office product. The European Commission initiated an investigation into Microsoft’s tying of Office and Teams following a complaint by Slack, a competing workspace messaging app. Additionally, regulators are looking into whether Microsoft is preventing customers from utilizing certain security software provided by its competitors, potentially breaching EU competition rules.
Furthermore, EU antitrust regulators are also scrutinizing Microsoft’s investment in ChatGPT maker OpenAI, raising concerns about compliance with EU merger rules. OpenAI’s efforts to produce less factually inaccurate chatbot output have not been enough to ensure full compliance with EU data regulations. Additionally, Meta Platforms have updated safety features in response to EU concerns, adding safeguards to its misinformation tracking tool CrowdTangle during the European Parliament elections to address criticisms of failing to tackle disinformation and deceptive advertising on Facebook and Instagram.
In regards to Facebook and Instagram, the platforms are under investigation for potential breaches of EU online content rules concerning child safety, which could result in significant fines. The EU antitrust regulators have also announced investigations into Meta, Apple, and Google for potential violations of the Digital Markets Act (DMA). In September 2023, the EU identified 22 “gatekeeper” services operated by major tech companies, giving them six months to comply with DMA provisions meant to enhance user choice and competition.
In response to regulatory actions, major tech firms like Apple, Meta, and Microsoft have been taking steps to address concerns raised by European watchdogs. Apple, for example, was fined a record 1.84 billion euros for antitrust violations by the EU, with ongoing disputes regarding its role as a gatekeeper under the DMA. Meta and TikTok are fighting against their gatekeeper designations, while Google made commitments to end a German antitrust investigation aimed at curbing its market power by offering users more control over their data practices.
Country-specific actions have also been taken by regulators in France, Italy, the Netherlands, and Spain. France’s competition watchdog fined Google for breaches related to EU intellectual property rules, while Italy imposed fines on Facebook and Meta for unfair commercial practices. The Dutch privacy watchdog recommended that government organizations stop using Facebook due to concerns about personal data usage, and the competition regulator in the Netherlands rejected Apple’s objections against fines over App Store regulations. Spain’s data protection watchdog ordered a suspension of planned Meta products for the European Parliament elections, while a startup group in Spain complained to the antitrust regulator about alleged anti-competitive practices by Microsoft in the cloud industry.
Overall, European regulators are ramping up efforts to hold big tech companies accountable for potential violations of competition and data protection rules, with investigations and fines being imposed to ensure compliance with EU regulations. The actions taken by watchdogs in various EU countries signal a growing emphasis on addressing concerns related to market dominance, data privacy, and user safety within the tech industry. As regulators continue to scrutinize major players and enforce regulatory actions, companies must adapt and respond to meet evolving compliance standards in an increasingly regulated digital landscape.
