Negotiators from the European Parliament and EU member states reached an agreement on a landmark bill to limit market domination of American tech giants like Google, Meta, Amazon and Apple.
At a meeting in Brussels, legislators hammered out a comprehensive list of dos and don’ts that will designate the world’s most recognisable internet behemoths as “gatekeepers”, subject to special rules.
The Digital Markets Act (DMA) aims to protect consumers and give rivals a better opportunity to survive against the world’s most powerful tech companies. It has rushed through the EU’s legislative procedures.
As reported, German MEP Andreas Schwab, who led the negotiations for the European Parliament, said: “The agreement ushers in a new era of tech regulation worldwide. The Digital Markets Act puts an end to the ever-increasing dominance of big tech companies.”
The law’s principal goal is to avoid years of procedures and court battles to punish big tech companies’ monopolistic behaviour, which can result in massive fines, but little change in how the companies operate.
However, when fully implemented, this will give Brussels unprecedented authority to monitor the giants’ decisions, particularly when they buy promising companies.
According to reports, EU’s competition supremo Margrethe Vestager said, “The gatekeepers now have to take responsibility. A number of things they can do, a number of things they can’t do, and that, of course, gives everyone a fair chance.”
DECODING NEW LAW
The law comprises approximately 20 rules that, in many cases, target big tech practices that violate EU competition rules, but Brussels has failed to implement.
The DMA requires big tech companies to fulfil a slew of requirements, including requiring Apple to open up its app store to alternative payment systems, a demand that the iPhone maker has vehemently rejected, most notably in its dispute with Epic Games, the creator of Fortnite.
Users of Android-powered smartphones will be expected to see alternatives to Google’s search engine, Google Maps app and Chrome browser.
Apple would also be required to loosen its grip on the iPhone, allowing users to uninstall Apple’s Safari web browser and other company-imposed programmes. It has issued a statement expressing its displeasure with the law, stating it was “concerned” that several sections of the DMA could create needless privacy and security vulnerabilities for its consumers.
The law also requires messaging services like Meta-owned WhatsApp to make itself available to users on other services like Signal or Apple’s iMessage and vice-versa. It would have “concrete impacts on the lives of European citizens” according to France, which currently holds the EU presidency and negotiated on behalf of the bloc’s 27 member states.
Regarding the new legislation, France’s digital affairs minister Cedric O said: “We are talking about the goods you buy online, the smartphone you use every day, and the services you use every day.”
However, it is now understood that breaching the guidelines might result in fines of up to 10% of a company’s annual global sales, with repeat offenders facing fines of up to 20%.”
Big tech businesses have fought hard against the new laws, and their interests have been defended in Washington, where it is claimed that the new law unfairly targets US firms.
The DMA now faces final votes in a full session of the European Parliament as well as ministers from the EU’s 27 member states, thanks to the accord achieved by negotiators. The rules could take effect from January 1 next year, although tech corporations have requested more time to comply with the law.
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