The European Union (EU) has initiated investigations into tech giants Apple, Alphabet (Google’s parent company), and Meta (formerly Facebook) under the newly enacted Digital Markets Act (DMA), marking the first major application of the legislation aimed at curbing the market dominance of Big Tech companies.

The probes, announced by the European Commission on Monday, focus on allegations of anti-competitive practices and misuse of user data by the three tech behemoths. Specifically, the investigations will scrutinize whether Apple and Alphabet have unfairly promoted their own app stores and whether Meta has violated data privacy regulations in its advertising practices.

Under the DMA, companies found to be in breach of the regulations face significant financial penalties, amounting to up to 10 percent of their global turnover. Margrethe Vestager, the EU’s executive vice-president for digital policy, underscored the seriousness of the cases, emphasizing the DMA’s objective of fostering greater choice and fairness for consumers.

Key concerns highlighted by the European Commission include restrictions imposed by Apple and Alphabet that hinder developers’ ability to promote alternative services and whether Google’s search algorithms prioritize its own services unfairly. Additionally, the Commission is investigating whether Apple complies with requirements for users to uninstall applications easily and change default settings on its iOS operating system.

In the case of Meta, the focus is on the company’s new subscription model, which requires user consent for combining personal data for advertising purposes. Thierry Breton, the EU’s commissioner for the internal market, expressed skepticism about the tech companies’ compliance with DMA obligations, highlighting the need for a more transparent and competitive digital environment.

These investigations come on the heels of previous regulatory actions against Big Tech, including a recent €1.8 billion fine imposed by the EU on Apple for anti-competitive behavior related to music streaming apps. Moreover, the US Department of Justice’s lawsuit against Apple underscores the global scrutiny facing tech giants over their market practices.

While tech companies have defended their actions, stating their compliance with regulatory requirements and their commitment to constructive engagement with authorities, industry observers remain cautious. The European Commission aims to conclude its probes within a year, signaling a more expedited approach compared to previous antitrust investigations.

However, concerns linger about the politicization of the DMA compliance process and the potential outcomes of the investigations. As the EU seeks to establish a fairer digital landscape, the tech industry braces for heightened regulatory scrutiny and the possibility of significant changes to business operations in the European market.