European Union’s Digital Markets Act (DMA) Could End The Dominance Of Apple And Google

 

 

 

Google and Apple will be required to offer their services and platforms to other businesses under the Digital Markets Act (DMA).

Major technology companies have long been accused of abusing their market power to eliminate competition.

Margarethe Vestager, the EU’s antitrust chief said, “What we want is simple: fair markets…in digital, large gatekeeper platforms have prevented businesses and consumers from the benefits of competitive digital markets.”

The announcement marks the EU’s most significant regulatory action yet against what it defines as “anti-trust” or anti-competitive behavior by primarily US technology companies.

Andreas Schwab, a German MEP, who led the negotiations for the European Parliament said, “The agreement ushers in a new era of tech regulation worldwide.”

Apple would be compelled to open up its App Store to third-party payment choices under the proposed DMA, rather than forcing consumers to utilize Apple’s payment system.

Google will be required to provide alternatives to its search engine, Google Maps app, and Chrome browser to those who use devices that run on the company’s Android OS.

Apple would also be required to lessen its grip on the iPhone, allowing users to uninstall Apple’s Safari web browser and other company-imposed applications that are currently impossible to remove.

Facebook Messenger, WhatsApp, iMessage, Google Play, the App Store, and a slew of other prominent internet companies’ services are among the law’s targets.

The EU wants to offer users alternative options when it comes to how they transmit communications. According to the new guidelines, tech companies must make their messaging services interoperable with smaller competitors.

Apple has said that it was “concerned that some provisions of the DMA will create unnecessary privacy and security vulnerabilities for our users”.

In addition, Google has clarified that “While we support many of the DMA’s ambitions around consumer choice and interoperability, we’re worried that some of these rules could reduce innovation and the choice available to Europeans.”

Only enterprises with a market capitalization of more than €75 billion (£63 billion), yearly sales of more than €7.5 billion, and at least 45 million monthly users will be affected by the rule.

Ms. Vestager suggested legislation just over a year ago in response to what she saw as monopolistic behavior from Big Tech. She was known to be irritated by how huge, US IT businesses had been able to stall and even resist EU fines.

On Thursday, Ms. Vestager stated, “The gatekeepers – they now have to take responsibility.”

When fully implemented, the rule will give Brussels extraordinary regulatory control over large tech firms.

Many major US internet corporations have large lobbying operations in Washington and they have argued that such rules harm successful American businesses.

Many US politicians, on the other hand, want to cut Big Tech’s wings, and there are measures in Congress right now that would do just that.

The DMA now faces final votes in the European Parliament and by ministers from the EU’s 27 member states, thanks to the deal made by negotiators.