BRUSSELS - The European Commission is set to investigate whether big tech companies are doing enough to combat financial fraud in the online environment, with Digital Commissioner Henna Virkkunen telling the Financial Times that the EC will send a formal request for information to the firms under powers granted by the Digital Services Act (DSA). This may later lead to a formal investigation.

The Commission wants details from companies - namely Apple, Google (Alphabet), Microsoft and Booking.com - on how they detect and remove offers or apps used for financial fraud. These include fake banking apps, misleading search results or fraudulent accommodation ads. The aim is to find out whether the platforms are meeting the DSA's obligations to prevent damage, which the EU says amounts to billions of euros each year.

The DSA gives the EC the tools to request information and - if serious deficiencies are found - to launch investigations with potentially high penalties, theoretically up to several percent of global turnover. According to the Financial Times, this is a shift in DSA enforcement towards financial crime, not just content such as misinformation or child protection.

The Commission has previously used the DSA to send requests for information to large platforms. In the past, this has included Apple and Google in relation to the operation of the App Store and Google Play. The current move thus follows previous practice, but this time with a clear focus on preventing financial fraud.

Examples of damage and technical risks

Security teams of large companies and independent experts have long warned about phishing campaigns and fake sites that abuse the brands of booking portals or banks. Microsoft, for example, has described cases where fraudsters have mimicked Booking.com in an attempt to obtain login and payment details. These examples show why Brussels sees the big platforms as key players in consumer protection.

What does this mean for businesses and consumers?

If the investigation confirms systemic deficiencies, companies risk having to take corrective action and face heavy fines. For consumers, this could mean faster removal of fraudulent offers, stricter controls on apps and better mechanisms for reporting harmful content. It also reopens the debate on the regulation of US tech giants and on EU-US relations in the digital sphere.

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