EU probes Apple, Google, Microsoft on handling online financial scams under Digital Services Act

The European Union is intensifying its enforcement of the Digital Services Act by formally requesting Apple, Google, Microsoft, and Booking Holdings to explain their measures against online financial scams, including fake banking apps, fraudulent accommodation listings, and deceptive search results. EU tech chief Henna Virkkunen emphasized the growing prevalence of online criminal activity and the need for platforms to take stronger actions to detect and prevent illegal content, noting that financial losses from online fraud exceed €4 billion annually. These companies face potential investigations and fines of up to 6% of their global revenue if found inadequate in combating scams. The Commission’s inquiries also cover compliance with “Know Your Business Customer” rules to identify suspicious actors before harm occurs and transparency in advertising repositories to detect fraudulent ads. Apple faces particular legal scrutiny in the EU over scam apps making it through its App Store review process, challenging its claim that exclusive app control ensures user safety. This scrutiny comes amid broader transatlantic tensions, with US President Donald Trump threatening trade actions over perceived discriminatory treatment of American tech firms in Europe.