“The companies that operate in the EU, regardless of their place of constitution, must comply with the EU standards, including the Digital Markets Law (DMA),” said the Spanish commissioner Teresa Ribera in one of her first outstanding actions since she assumed the position that Margrethe Vestager previously occupied. His words do not arrive alone: they are accompanied by a reprimand against Google y Appletwo giants who are in the sights for their relationship with the DMA. And does so in a context marked by growing friction with the United States.
Google’s case
The European Commission, the executive arm of the block, has determined that certain functions of Google Search are designed to give preference to Alphabet’s own services on those of the competition. A movement that, according to Brussels, collides directly with the principles of transparency and non -discrimination of the DMA. On the other hand, he also pointed out that Google Play also does not comply with the aforementioned regulations, since it limits applications developers when “directing” users to external offers outside the store.
This is what has determined, in a preliminary way, the European Commission in its investigation:
- Google Search: Google matrix treats Its own services, such as purchases, hotels, transport or financial or sports results, more favorable in Google search results than similar services offered by third parties. Here it is easy to imagine several scenarios. For example, if we seek ‘Apple Quote’ on Google, it is likely that the first result comes from Google Finance instead of other financial sources. The same goes for searches such as ‘Cheap flights to London’, where Google Travel usually appears before external alternatives.
In the words of the commission: “Alphabet gives its own services a more prominent treatment compared to others by showing them at the top of Google search results or in dedicated spaces, with improved visual formats and filtering mechanisms.”
- Google Play. In the case of the official Android application store, European regulators accuse Google of Restrict the ability of developers to lead users to their own distribution channels and offers. In addition, they point out that, although the company can collect a rate for facilitating the collection of new customers through Google Play, the commissions that Alphabet applies exceed what they consider reasonable
“Alphabet charges developers a high rate for an excessively long period of time for each purchase of digital goods and services,” says the commission.
Apple’s case
Brussels regulators have indicated that Apple must take measures to fulfill certain aspects of their interoperability obligation. As they explain, this will facilitate a more fluid integration of third -party products within the company’s ecosystem and allow users to access a greater variety of compatible devices and services. There are two key points in this issue. Let’s see what are:
- Connected devices. The commission has focused on the connectivity functions of iOS that allow to link devices such as smart watches, headphones and televisions. The required modifications seek to improve the user experience, allowing the visualization of notifications in wearables, the wireless transfer of files and more accessible configurations. “The connected devices of all brands will work better on the iPhone,” they say.
- Interoperability requests. The objective is that Apple facilitates access to developers who want to make the most of the interoperability capabilities of their ecosystem. For this, improvements are proposed as a more transparent access to technical documentation on functions, more agile communication and update and a more predictable period for requesting applications. As explained, “developers will benefit from a rapid and fair processing of their interoperability applications.”
What’s still for Google and Apple
In the case of Google, the company has the right to formally defend and respond to the conclusions of the European Commission. If preliminary opinions are confirmed, Brussels could formalize the breach of the DMA, which would mean fines of up to 10% of its global income. In case of recidivism, the sanction could double up to 20%.
As for Apple, the company is obliged to apply the measures imposed by European regulators. However, these decisions respect their right of defense and remain subject to judicial scrutiny. Although, for now, the decision does not imply immediate sanctions, if the company refuses to comply, the commission could adopt additional measures under the DMA, which would eventually derive in fines.
The effect in the United States
This movement comes at a time when several technological leaders have raised their voice against the fines imposed in the EU. The protests have reached Donald Trump. Last year, the president -elect said in a podcast that Tim Cook called him to talk about the sanctions against Apple in Europe, to which he replied that he would not allow the EU to “take advantage” of US companies if he arrived again at the White House. After his electoral victory, his speech has not changed. Any future sanction to Apple or Google could generate a Negative reaction from Washington.
Images | The European Union (via Wikimedia Commons / CC by 4.0) | Greens Feressa
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