Negotiators from the European Parliament and EU member states reached an agreement on a landmark bill to limit the market dominance of US tech giants such as Google, Meta, Amazon and Apple.
At a meeting in Brussels, legislators prepared a comprehensive list of do’s and don’ts that would designate the world’s most recognizable internet giants as “gatekeepers” subject to special rules.
The Digital Markets Act (DMA) aims to protect consumers and give rivals a better chance of survival against the world’s most powerful tech companies. It has progressed through the legislative processes of the European Union.
As reported, German MEP Andreas Schwab, who led negotiations for the European Parliament, said: “The agreement heralds a new era of tech regulation around the world. The Digital Markets Act will end the ever-increasing dominance of big tech companies.” does.”
The law’s main goal is to avoid years of processes and court battles to punish the monopolistic behavior of big tech companies, which can result in massive fines, but little change in the way companies operate.
However, when fully implemented, it would give Brussels unprecedented authority to oversee the decisions of giants, especially when they buy promising companies.
According to reports, EU competition supremo Margaret Vestager said, ‘The gatekeepers now have to take responsibility. Many things they can do, many things they can’t, and of course, gives everyone a fair chance. ,
decoding new law
The law includes about 20 rules that, in many cases, target large technical practices that violate EU competition rules, but Brussels has failed to implement.
The DMA requires large tech companies to meet a number of requirements, including requiring Apple to open its App Store to alternative payment systems, a demand that has been vehemently rejected by the iPhone maker, notably Fortnite. In dispute with producer Epic Games. ,
Users of Android-powered smartphones will be expected to see alternatives to Google’s search engine, Google Maps app and Chrome browser.
Apple will also need to loosen its grip on the iPhone, allowing users to uninstall Apple’s Safari web browser and other company-imposed programs. It has issued a statement expressing its displeasure with the law, saying it was “concerned” that multiple classes of DMAs could create unnecessary privacy and security vulnerabilities for their consumers.
The law also requires messaging services like meta-owned WhatsApp to be made available to users on other services like Signal or Apple’s iMessage and vice versa. It will have a “substantial impact on the lives of European citizens” according to France, which currently presides over the EU and negotiates on behalf of the bloc’s 27 member states.
Regarding the new law, France’s Minister of Digital Affairs Cédric O said: “We are talking about the goods that you buy online, the smartphones that you use every day, and the services that You use every day.”
However, it is now understood that violating the guidelines could result in fines of up to 10% of the company’s annual global sales, and repeat offenders could face 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 a plenary session of the European Parliament, as well as the final votes of ministers from the 27 EU member states, thanks to an agreement reached by the negotiators. The rules are likely to take effect from January 1 next year, though tech corporations have requested more time to comply with the law.
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