The European Union is seeking to rein in the operations of large technology companies. This time, the investigation focuses on the performance of the leading web browsers , sponsored by Google and Apple, as they appear to maintain a monopoly that stifles innovation from smaller developers.
It is worth remembering that this week the European Centre for Algorithmic Transparency was presented , which will monitor compliance with the Digital Services Act that will begin to be applied from 2023. The organization will initially work with 10 specialists and the goal is to expand the number of employees in the future, according to the positions that become available.
The UK is investigating the dominance of Apple and Google's mobile web browsers
The investigation underway in the United Kingdom is being conducted by the Competition and Markets Authority as part of its antitrust policies. The period under review begins in June of this year, when a report was published detailing the situation specifically affecting mobile devices.
UK authorities are investigating Apple and Google for a duopoly in operating systems, cloud gaming, and mobile browsers. https://t.co/eCJGfDYrfn
— Geeknetic (@Geeknetic) November 22, 2022
The report stated that the duopoly maintained by Apple and Google stifles competition, preventing new players from entering the communications market. They indicated they would take all necessary actions to ensure compliance with the law, which is the aim of the investigation announced last Tuesday.
According to CMA Chief Executive Sarah Cardell, UK developers and other tech companies are telling them that restrictions imposed by Google and Apple are preventing them from sustaining their innovations. Apparently, the main problem arises when running games, as additional applications must be developed to make them work in browsers, resulting in unforeseen expenses within the cost structure.
In response to the allegations, both companies expressed their perspectives. Google asserted that developers have the freedom to use their preferred browser , as they are committed to providing the tools necessary for successful businesses. Apple, for its part, stated that it will collaborate with the CMA to explain the available resources and, in particular, the work it does to protect user privacy.
The European Union keeps getting on the nerves of the big tech companies.
The European Union has been engaged in a fierce battle against major US technology companies for some time. Some time ago, the US Department of Commerce stated in a press release that it intended to penalize those who have contributed economically to the continent's recovery. And this will surely intensify with the implementation of the Digital Markets Act.
📰The Digital Services Act has come into force, a new set of EU rules for a safer and more responsible online environment. It applies to digital services that connect consumers with goods, services, or content.
More ℹ️: https://t.co/9Vd8aL711r.
— Europe Direct CLM (@europedirectCLM) November 17, 2022
In 2022, lawsuits and restrictions against Google and Apple have been commonplace. On September 14, it was announced that Google will have to pay a €4.1 billion fine for its monopoly on Android devices. The legal process began in 2018 with the allegation that Google requires manufacturers to install its browser as the default, although the conditions are not the same in all cases. The ruling states in one of its paragraphs that it is necessary to maintain fair competition in the commercial sphere.
In January, France imposed a multimillion-euro fine on Google and Facebook due to their use of cookies and the difficulties users face in opting out of those they consider intrusive. They were given a deadline to make the necessary adjustments, and failure to comply would result in a penalty of €100.000 for each day of delay. Both companies stated they would work on improvements and cooperate with the relevant authorities.
Another fine facing Google, considered one of the largest in history, relates to its advertising business . European Union investigators maintain that it gives Google an unfair advantage over its competitors, and are therefore seeking a €4 billion fine. If approved, this will bring the total fines levied against Google in the last decade in Europe to €8 billion. The results of this investigation will be announced in early 2023, unless a satisfactory agreement is reached in the coming months.
Apple has had to navigate a similar path in Europe in 2022. One of the biggest challenges is the inclusion of the USB-C port in iPhones starting in 2024. The reason is that they must adapt to international standards, and the different connection means users have to buy different chargers. For the smaller devices in their lineup, they will have the option of using a format that suits their design and functionality.
Similarly, in May they were accused of limiting payment options for app developers. Many complained that the primary wallet available is Apple Pay, even though many other options exist on the market with lower commission rates. The company refuted this, stating that it is one of the alternatives they offer. However, it is used by 2.500 banks and approximately 250 financial institutions. The fine they could face for this issue is 10% of their revenue from last year.
The data presented clearly shows that tech giants frequently have to pay enormous sums of money in Europe due to the strict monitoring they are subjected to. They walk a fine line where a violation of any country's laws means going to court and, if they lose, having the imposed fines overturned.
