EU Regulators Intensify Efforts to Rein in Big Tech Giants

In a recent series of actions, European regulators are stepping up their efforts to monitor and regulate the activities of major technology companies, further underscoring their commitment to fostering fair competition and safeguarding consumer interests.

European Union:

• Microsoft recently announced plans to separate its chat and video app, Teams, from its Office suite, aiming to avoid a potential EU antitrust penalty. The European Commission initiated an investigation into the Office and Teams integration.
• Meta Platforms offered concessions in July, attempting to address EU antitrust concerns regarding the use of competitors' advertising data for its Facebook Marketplace service. Regulators rejected Meta's proposals.
• Meta faced a record-breaking €1.2 billion ($1.27 billion) fine from the EU's lead privacy regulator in May. The fine stemmed from concerns about user data handling, and Meta was given five months to cease transferring user data to the United States.
• EU regulators in June signaled that Alphabet's Google may need to divest part of its adtech business to address antitrust issues, potentially subjecting the tech giant to its most substantial regulatory penalty to date.
• In 2021, the EU competition watchdog accused Apple of limiting competitors' access to NFC technology, used for mobile wallets, hindering the development of rival services on Apple devices.
• In December 2022, Amazon resolved three antitrust investigations by addressing the EU's concerns regarding its use of sellers' data.
• In September, the EU identified 22 "gatekeeper" services operated by major tech companies, giving them six months to comply with the Digital Markets Act's provisions.

United Kingdom:

• The UK's communications regulator expressed concerns in April, prompting an investigation into Amazon and Microsoft by the UK competition watchdog. The investigation focused on aspects of the market, such as supplier-switching fees.

France:

• French antitrust authorities raided the local offices of Nvidia in late September. The probe targeted the "graphics cards sector," as reported by the Wall Street Journal.
• In July, the antitrust authority raised concerns about Apple's utilization of iPhone user data in advertising and its potential misuse of market dominance through biased and unclear data handling conditions.
• The country's privacy watchdog expressed doubts about the legality of OpenAI CEO Sam Altman's Worldcoin crypto project and the conditions for storing biometric data.

Germany:

• A German data watchdog initiated an investigation into Worldcoin in late 2022. Worldcoin requires users to provide iris scans for a digital ID and cryptocurrency in certain countries.

Italy:

• Italy's antitrust agency probed Apple in May for alleged abuse of its dominant position in the apps market.
• In April, measures were taken against Meta over alleged market abuse related to music rights on its platforms.
• OpenAI's ChatGPT chatbot faced a temporary ban in Italy in March, primarily due to concerns raised by the national data protection authority. It was reinstated for users in April.
• In March, the antitrust authority began an investigation into TikTok over alleged violations related to the publication of "dangerous content" inciting self-harm, suicide, and unhealthy nutrition.

Netherlands:

• The Dutch competition regulator rejected Apple's objections to fines totaling €50 million in early October. The fines were imposed for Apple's failure to comply with regulations aimed at curbing the dominant position of the Apple App Store. Apple intends to appeal the decision in Dutch courts.

Poland:

• In September, a Polish watchdog initiated an investigation into OpenAI following a complaint alleging that ChatGPT violated European Union data protection laws.
• In February, Poland's competition and consumer protection authority accused Amazon's European arm of deceptive sales and delivery practices.

Spain:

• Spain's antitrust regulator imposed fines on Amazon and Apple in July for colluding to restrict the online sale of devices from Apple and competitors in the country.

These regulatory actions underscore the growing scrutiny of big tech companies by European authorities, emphasizing the need for compliance with competition and consumer protection laws in the region. As tech giants continue to face regulatory challenges, the landscape of digital markets in Europe is evolving to ensure fairness, transparency, and consumer welfare.