Brussels, Belgium – The European Commission announced a significant regulatory action on Tuesday, May 27, 2025, by formally opening antitrust proceedings against the technology giant GlobalTech. This in-depth investigation centers on GlobalTech’s app store policies and practices, specifically scrutinizing issues related to third-party access to its platform and the rules governing payment systems within its mobile ecosystem.
The probe, launched under the purview of both the landmark Digital Markets Act (DMA) and established traditional EU competition law, including concerns under Article 102 of the Treaty on the Functioning of the European Union (TFEU), seeks to determine if GlobalTech’s conduct on its dominant mobile platform disadvantages rival app developers and competing payment service providers. This action follows a period of intense regulatory scrutiny and preliminary findings that suggested potential breaches of both specific DMA obligations and the general prohibition against the abuse of a dominant market position under Article 102 TFEU.
Scope of the Investigation
The formal proceedings will delve deeply into several key areas concerning GlobalTech’s management of its primary mobile app distribution platform. A central focus will be the terms and conditions imposed by GlobalTech on app developers seeking to list their applications in the store. Regulators are particularly interested in requirements that may force developers to use GlobalTech’s own in-app payment system, potentially hindering alternative payment providers and limiting developer flexibility. The investigation will examine whether these requirements are fair, reasonable, and non-discriminatory, as mandated by the DMA for gatekeepers like GlobalTech.
Beyond payment systems, the probe will also investigate rules surrounding third-party access. This includes examining any restrictions GlobalTech may place on developers’ ability to communicate directly with their end-users, for instance, by steering users to cheaper offers or alternative purchasing mechanisms outside of GlobalTech’s ecosystem. The Commission will assess whether these restrictions unfairly limit competition and harm innovation in the digital economy, potentially solidifying GlobalTech’s control over a critical distribution channel.
The investigation is comprehensive and aims to gather extensive evidence from GlobalTech, app developers, payment providers, and other market participants. The Commission’s objective is to fully understand the impact of GlobalTech’s policies on the competitive landscape within and around its app store.
Legal Basis: DMA and Article 102 TFEU
The initiation of formal proceedings under both the DMA and Article 102 TFEU underscores the dual nature of the EU’s regulatory approach to large online platforms. The DMA, which recently became fully applicable, imposes a specific set of do’s and don’ts on designated “gatekeepers” – large digital platforms providing core platform services, such as app stores, which are deemed to control important gateways between business users and end-users. GlobalTech has been designated as a gatekeeper, triggering specific obligations related to fair access and competition on its platform.
Article 102 TFEU, a long-standing pillar of EU competition law, prohibits the abuse of a dominant position in the internal market or a substantial part of it. The European Commission has a history of using this article to address practices by dominant companies that harm competition, consumers, and innovation. By simultaneously investigating under Article 102 TFEU, the Commission can potentially address concerns that fall outside the specific provisions of the DMA or build a case based on established competition principles should the DMA investigation reveal related but distinct issues.
The preliminary findings that prompted this formal probe indicated potential issues under both legal frameworks. The Commission will now use its full investigative powers to gather further evidence and deepen its analysis of whether GlobalTech’s app store rules constitute an abuse of dominance under Article 102 TFEU and a breach of relevant DMA obligations.
Context and Implications
This formal investigation is part of a broader global trend of increased regulatory scrutiny on major technology companies, particularly concerning their power as gatekeepers controlling access to digital markets. The European Union, through initiatives like the DMA and targeted antitrust enforcement, has positioned itself at the forefront of efforts to ensure fair competition and open digital ecosystems.
A formal antitrust investigation by the European Commission is a serious undertaking. It grants the Commission wide-ranging powers to demand information, conduct dawn raids, and interview key personnel. There is no strict legal deadline for concluding such an investigation, as its duration depends on the complexity of the case, the extent of cooperation from the parties involved, and the exercise of rights of defence.
If the Commission finds that GlobalTech has indeed breached EU competition rules or failed to comply with its DMA obligations, it has the power to impose significant remedies. These could include ordering GlobalTech to change its business practices, imposing substantial fines (potentially up to 10% of the company’s global annual revenue for antitrust violations, or even higher percentages of global turnover under the DMA for non-compliance), or even structural remedies in severe cases. However, the opening of formal proceedings does not prejudge the outcome of the investigation.
GlobalTech has acknowledged the initiation of the probe, stating it will cooperate fully with the European Commission to explain its app store policies and demonstrate their benefits for both developers and consumers. Nevertheless, the formal nature of this inquiry signals a significant escalation in the regulatory challenges facing the tech giant in one of its key global markets.
