The European Commission is investigating Alphabet

The European Commission has launched an investigation into the non-compliance of Alphabet's practices with the Digital Markets Act (DMA).

Here's What We Know

Alphabet is a multinational technology company that was established in 2015 as a management company for Google and its other divisions. This allowed to divide Google's business into different sectors, such as search, advertising, cloud services, hardware manufacturing, and others.

The DMA aims to ensure fair competition, limit the monopoly of technology leaders and promote innovation in the European Union.

The Commission's actions are the result of their concern about how Alphabet, led by Google, is exploiting its market leadership position, especially through the Play Store and Google search on the Android platform.

The DMA's new rules also reflect the imposition of a $1.9 billion fine on Apple for allegedly putting pressure on developers and restricting alternative services on iOS.

Along with Alphabet, Meta is also under review. Meta, the company that owns Facebook and Instagram, is under scrutiny for their "pay or opt-in" model. This model allows users to pay for services or agree to use them with conditions. This approach can create obstacles to competition in the advertising segment, as it can provide advantages to the company offering these services and make it difficult for new entrants to enter the market. It is noted that the company should immediately respond to the European Commission's investigation.

Source: Android Police