European regulators crack down on Big Tech
Updates with latest on Apple tap-and-go mobile payments, Microsoft giving up seat at OpenAI
July 11 (Reuters) -European regulators have launched a series of probes into Big Tech. In the latest move to stave off EU antitrust fines, Apple AAPL.O agreed to open its tap-and-go mobile payments system to rivals.
Here are some of the actions taken by European watchdogs against big technology companies:
EUROPEAN UNION
Apple will open its tap-and-go mobile payments system to rivals, EU antitrust regulators said on July 11, ending a four-year long investigation that could have resulted in a hefty fine for the iPhone maker.
The European Commission (EC), which acts as the EU antitrust enforcer, said on June 24 that Apple's App Store rules breached the bloc's Digital Markets Act (DMA) by preventing app developers from steering consumers to alternative offers.
The EC also said it was opening a new investigation into Apple over its new contractual requirements for third-party app developers and app stores.
DMA violations could result in a fine of as much as 10% of a company's global annual turnover.
Brussels fined the group 1.84 billion euros ($1.97 billion) on March 4, its first ever EU antitrust penalty, following a 2019 complaint from Spotify SPOT.N. Apple said it would challenge the decision in court.
Microsoft MSFT.O gave up its board observer seat at OpenAI on July 10, after antitrust watchdogs in Europe, Britain and the U.S. raised concerns about merger rules regarding its investment of more than $10 billion in the maker of ChatGPT.
OpenAI's efforts to produce less factually false output from its chatbot are not enough to ensure full compliance with EU data rules, a task force at the bloc's privacy watchdog said in May.
EU antitrust regulators on June 25 charged Microsoft of illegally bundling its chat and video app Teams with its Office product, and said that more needed to be done to unbundle the package.
Microsoft said it would work to find solutions to address the regulators' concerns.
The EC is also probing whether Microsoft is preventing customers from relying on certain security software provided by competitors, according to a document regulators sent to at least one of its rivals in January, seen by Reuters.
The EC has asked Amazon AMZN.O to provide detailed information by July 26 on the measures the U.S. e-commerce giant has taken to comply with its Digital Services Act (DSA) obligations, especially its compliance with provisions concerning transparency of the recommender systems.
The DSA requires Big Tech players to do more to tackle illegal and harmful content on their platforms.
The EC charged Meta META.O on July 1 for failing to comply with the DMA in its new pay or consent advertising model.
The EC said the binary choice forces users to consent to the combination of their personal data and fails to provide them a less personalised but equivalent version of Meta's social networks.
In May, Meta had added safety features to its misinformation tracking tool CrowdTangle for use during June's European Parliament elections in an attempt to allay EU concerns that triggered an investigation in April into the impact of Meta's decision to phase out the tool.
Facebook and Instagram are also being investigated for potential breaches of EU online content rules relating to child safety, which could lead to hefty fines, the EC said on May 16.
Alphabet's GOOGL.O Google is also being investigated over possible breaches of the DMA, the EC said in March.
An advisor to Europe's top court said on Jan. 11 that the court should uphold Google's EU antitrust fine of 2.42 billion euros ($2.60 billion). The EC fined the company in 2017 for using its own price comparison shopping service to gain an unfair advantage over smaller European rivals.
In September 2023, the EU named 22 so-called "gatekeeper" services run by Alphabet, Amazon, Apple, Meta, Microsoft and TikTok-owner ByteDance, giving them six months to comply with the DMA provisions meant to make it easier for European users to move between competing services.
In April, the regulators designated Apple's operating system for iPads as a gatekeeper under the DMA.
Meta and TikTok appealed against the gatekeeper status in November, with the latter losing a bid to suspend its designation in February. Apple said in April it would continue to engage with the EC to comply with the rules.
BRITAIN
In October, Britain's media regulator asked the Competition and Markets Authority to investigate Amazon and Microsoft's dominance of the UK cloud market. The CMA will complete its investigation by April 2025.
FRANCE
Nvidia is set to be charged by the French antitrust regulator for allegedly anti-competitive practices, people with direct knowledge of the matter said on July 1, making it the first enforcer to act against the computer chip maker.
The French so-called statement of objections or charge sheet would follow dawn raids in the graphics cards sector in September last year, which sources said targeted Nvidia.
The French authority and Nvidia declined comment.
France's competition watchdog in March fined Google 250 million euros ($268 million) for breaches linked to EU intellectual property rules in its relationship with media publishers.
GERMANY
Google agreed to change its user data practices to end a German antitrust investigation aimed at curbing its data-driven market power, the German cartel office said in October.
ITALY
Italy's antitrust regulator said on June 5 it had fined Facebook and Meta 3.5 million euros ($3.75 million) for what it described as unfair commercial practices.
Last year, it opened a probe into Apple for alleged abuse of its dominant position in the apps market, and took measures against Meta over an alleged abuse of its position in the country, in a probe involving the rights to music posted on its platforms.
NETHERLANDS
The Dutch privacy watchdog in April recommended that government organisations should stop using Facebook as long as it is unclear what happens with personal data of users of the government's Facebook pages.
The country's competition regulator last year rejected Apple's objections against fines of 50 million euros ($53.6 million) over a failure to comply with regulations aimed at limiting the dominant position of its App Store. Apple will appeal the decision in Dutch courts.
SPAIN
Spain's data protection watchdog in May provisionally suspended two planned Meta products that were to be deployed in the EU election on Instagram and Facebook.
A group representing more than 700 startups in Spain issued a complaint about Microsoft's cloud practices to the country's antitrust regulator in May, citing several allegedly anti-competitive practices in recent years.
($1 = 0.9323 euros)
Compiled by Alessandro Parodi, Victor Goury-Laffont, Olivier Cherfan, Paolo Laudani and Enrico Sciacovelli in Gdansk; editing by Milla Nissi
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