EU Scrutinizes Tech Giants on Anti-Fraud Measures Under New Law

EU Scrutinizes Tech Giants on Anti-Fraud Measures Under New Law


Brussels: The European Commission has asked Apple, Google, Microsoft, and Booking.com to explain how they combat financial fraud on their platforms. A commission spokesman emphasized that the move is a crucial step to protect users across the European Union.



According to Oman News Agency, a formal request for information was made under the bloc’s Digital Services Act (DSA), which imposes strict obligations on large online platforms. The four companies are required to detail their strategies for preventing users from incurring financial losses due to fake offers and other scams.



For Apple and Google, the focus will likely be on their App Store and Google Play marketplaces. Microsoft, on the other hand, operates a sales platform through its Bing service. Meanwhile, Booking.com, a travel company based in the Netherlands, is the only non-US company included in this inquiry.



The commission has not set a specific deadline for the companies’ responses, although such requests typically allow for a few weeks. Officials indicated that they will determine the next steps after reviewing the replies. Companies that provide false, incomplete, or misleading information-or those that refuse to answer-could face fines.



The European Commission may open formal proceedings against the firms after receiving their responses, at which point it would disclose more details about its concerns. The DSA aims to tighten oversight of major digital platforms, requiring them to remove illegal content more swiftly and facilitate user reporting of such content. Additionally, large platforms must verify and track the identity of sellers and collect documentation to assist affected users in cases of fraud.



The law has occasionally strained trans-Atlantic relations, with the administration of former US President Donald Trump arguing that it unfairly targets US tech giants and is anti-competitive.