The European Union (EU) has intensified its campaign to hold Big Tech accountable, turning its attention to Apple, Google, Microsoft, and Booking Holdings over the growing threat of financial scams proliferating online.
On Tuesday, the European Commission announced it had sent formal requests for information to these companies under the Digital Services Act (DSA), Europe’s landmark online safety law. The Commission wants concrete details on what measures these platforms have in place to prevent their services from being misused by fraudsters.
Officials stressed that this step does not yet constitute a formal investigation or an accusation of wrongdoing. Instead, it marks an early but serious move in ensuring these digital giants comply with one of the world’s most ambitious internet regulations.
Why the EU Is Acting Now
A Surge in Online Fraud
Financial fraud has become a major cross-border concern. According to estimates cited by EU officials, scams cost European citizens billions of euros annually. These scams take many forms:
- Fake banking and investment apps uploaded on app stores.
- Fraudulent advertisements and links appearing in search engines.
- False property listings on travel and booking platforms.
Criminals increasingly use sophisticated tactics, sometimes even leveraging artificial intelligence, to trick consumers into handing over sensitive personal data or money. The EU argues that platforms hosting such content have a responsibility to identify risks and shut down fraudulent activity quickly.
Platforms Under the Spotlight
The request for information targets four specific areas of concern:
- Apple App Store & Google Play Store
- The Commission wants details on how app stores identify and remove fraudulent financial apps that impersonate banks or investment firms.
- Fake apps have repeatedly been used by scammers to lure users into revealing account credentials or transferring money.
- Microsoft Bing & Google Search
- Regulators are pressing search engines to explain how they deal with suspicious links and ads that lead to scam websites.
- These scams often masquerade as legitimate businesses, making them particularly dangerous.
- Booking Holdings (Booking.com and related services)
- The EU is scrutinizing how travel platforms handle fake listings, where scammers create non-existent hotels or apartments to deceive users into paying deposits or fees.
- Ad Transparency and Business Verification
- All four companies must also clarify how they implement the “Know Your Business Customer” principle.
- The EU is asking whether ad repositories are fully accessible and transparent for regulators, researchers, and watchdog groups.
The Power of the Digital Services Act
What Is the DSA?
The Digital Services Act, which came into force in 2024, imposes strict responsibilities on very large online platforms (VLOPs) and search engines operating in the EU. These include Apple, Google, Microsoft, Meta, TikTok, Amazon, X (formerly Twitter), and others.
Key requirements under the DSA include:
- Conducting risk assessments on how platforms can be exploited for illegal content or scams.
- Implementing mitigation measures to reduce risks.
- Offering greater transparency about content moderation, algorithmic systems, and ad targeting.
- Allowing regulators access to data for compliance monitoring.
Failure to comply can lead to hefty fines of up to 6% of global annual revenue — a potentially massive penalty for companies worth hundreds of billions of dollars.
A Clash Between the EU and the U.S.
Trump’s Pushback
The DSA and its sister law, the Digital Markets Act (DMA), have not gone unchallenged. Former U.S. President Donald Trump and his allies have sharply criticized these regulations, accusing Brussels of unfairly targeting American tech companies.
Trump, who has already shaken up trade relations by imposing tariffs on EU goods, has suggested more levies could follow if U.S. tech firms continue to face “discriminatory” European rules.
Tech Giants Cry Censorship
Big Tech leaders — including Mark Zuckerberg (Meta) and Elon Musk (X) — have argued that some provisions of the DSA amount to censorship, restricting free speech under the guise of consumer protection.
The EU, however, maintains a clear principle: “What is illegal offline should also be illegal online.” Regulators insist that the laws are not about silencing voices but about ensuring accountability for platforms that profit from massive digital ecosystems.
Previous EU Actions Under the DSA
The EU has already launched several high-profile cases under the DSA, signaling its seriousness in enforcement:
- Meta (Facebook and Instagram) – under investigation for risks related to child safety and mental health.
- TikTok – scrutinized for its addictive design features and potential exposure of minors to harmful content.
- X (Twitter) – facing a prolonged investigation since December 2023, with regulators expected to impose fines once technical reviews are complete.
The EU stresses that enforcement applies equally to global players. For example, China’s AliExpress has also come under scrutiny, showing that enforcement is not confined to American firms.
What Happens Next?
The companies — Apple, Google, Microsoft, and Booking — must respond to the Commission’s request with detailed documentation on their anti-scam strategies.
The process will unfold in several stages:
- Submission of Responses: Each company will provide data on how it identifies and prevents scams.
- Commission Review: Officials will analyze whether the measures are sufficient, comprehensive, and in line with DSA obligations.
- Potential Investigations: If answers are inadequate, Brussels could escalate to formal probes.
- Possible Penalties: Non-compliance could trigger multi-billion-euro fines.
EU Digital Chief Henna Virkkunen recently warned that more investigations are likely: “The DSA is a huge legislation, and we will probably start new ones in the coming weeks and months.”
The Bigger Picture: Protecting Europeans Online
The Commission frames this move not just as a regulatory exercise but as a consumer protection mission. Scams, regulators argue, undermine trust in the digital economy and disproportionately hurt ordinary citizens.
By holding Big Tech platforms accountable, the EU aims to ensure that online spaces are safer and that consumers can rely on app stores, search engines, and booking platforms without fear of falling victim to fraud.
As enforcement ramps up, the EU is sending a strong signal: digital giants can no longer operate in Europe without strict responsibility for what happens on their platforms.
The Information is Collected from MSN and Yahoo.
