EU questions Apple, Google, Microsoft over online financial scams

The European Union on Tuesday demanded Big Tech players including Apple, Microsoft and Google explain what action they are taking to protect consumers against financial scams online, Agence France-Presse (AFP) reported. 

"The commission has sent a request for information under the Digital Services Act to four online platforms: Microsoft, Google, Apple and Booking to monitor and request information on how they make sure that their services are not being misused by scammers," EU digital affairs spokesman Thomas Regnier said.

Henna Virkkunen, the EU’s tech chief, told the Financial Times that the bloc will send formal requests to the three tech giants, as well as the global accommodation platform Booking Holdings under the Digital Services Act, aiming to tackle online financial scams.

“We see that more and more criminal actions are taking place online”, Virkkunen said. “We have to make sure that online platforms really take all their efforts to detect and prevent that kind of illegal content.” 

The measure comes as transatlantic tensions over the EU’s digital rule book continue to rise with the USA. 

US President Donald Trump has threatened to punish countries that “discriminate” against US companies with higher tariffs. 

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However, Virkkunen emphasized that the EU is not focused on the companies’ locations, but is instead scrutinizing their individual operations

The tech chief said Apple and Google will be scrutinized over how they handle fake applications in their app stores, such as fraudulent banking apps.

Additionally, Google and Microsoft’s Bing search engine will be examined for fake search results appearing in their platforms.

As for Booking Holdings, the only Europe-based company among the four being investigated, the EU will look into fake accommodation listings.

Virkunnen explained that financial scams can lead to mental health issues, especially as artificial intelligence has made detecting fraudulent practices more difficult.

Chinese companies Temu and Spain-based firms are also being examined by Brussels to assess their compliance with the Digital Services Act (DSA). 

Under the DSA, companies that fail to curb illegal content and disinformation can face penalties of up to 6 percent of their annual global turnover.