The biggest players in technology are the European Union To the Digital Markets Act or DMADeadline to comply with Today. What will happen to those who do not comply with the Digital Markets Law?
What will happen to those who do not comply with the Digital Markets Law?
DMA requires powerful companies to allow greater interoperability and avoid opting for their own digital services. The relevant law has sparked debate about what services should be included, sparked excitement among smaller competitors, and led to changes in the way companies handle core parts of their business. And after years of debate The rules come into force in March 2024.
The European Union, these 6 companies, namely Alphabet, Amazon, Apple, ByteDance, Meta, Microsoftlike app stores, search engines, and web browsers.basis” identified as large digital platforms that provide services, and the DMA’s restrictions apply to these companies.
What does DMA require?
By March 6, 6 designated companies must comply with DMA rules for 22 covered services set by the European Commission. By March 7, these companies must submit compliance reports to the EU explaining how they plan to comply with the rules. European officials will then evaluate these plans in workshops with each of the companies covered.
Overall, designated platforms need to take proactive steps that the EU believes will make digital markets fairer and more open. For example, gatekeepers must allow third-party companies to interoperate with their services, they cannot favor their own products over competitors’ products in rankings, and they cannot require app store access for outside developers to use payment systems or other services.
What is Gatekeeper?
The European Commission assumes that a platform that meets two conditions is a gatekeeper. First, at least annually in each of the last three fiscal years 7.5 billion eurosk EU revenue or an average of 75 billion Euros in the last fiscal year. must have a market value and also its basic platform to at least three EU member states. should provide. Secondly, in the EU At least 45 million monthly active users And more than 10,000 active EU business users annually in each of the last three financial years It operates a core platform with
The Commission identified specific services that it believed were subject to the DMA rules for each of the designated gatekeepers. Gatekeepers who don’t follow the rules could face fines of up to 10 percent of global revenue, and up to 20 percent for repeat violations.
What have the 6 big technology giants done so far?
- Alphabet: Alphabet has tied together many services to leverage their power, ranging from the search engine that dominates the entire internet to a popular mobile operating system. This ensures they have the broadest range of services covered by the DMA. Alphabet’s proposed changes did not please some competitors, especially smaller, specialized search platforms.
- Apple: Apple is one of the most notable targets of the DMA due to its wide range of mobile software. The company announced that it will make several changes in the iOS 17.4 update to comply with the new rules of the European Union. However, it should be noted that these changes were not made voluntarily, and some evenmalicious complianceIt is stated that it is defined as “.
- Meta: Meta’s targeted services are concentrated in areas such as social networks and advertising platform. The company is planning third-party cross-platform messaging specifically for WhatsApp. However, it faces some restrictions and objections.
- Amazon: Amazon’s services include online marketplace and advertising business. The company has taken some steps to change customer controls regarding ads and businesses’ advertising management. However, it has not yet detailed details about the changes it will make to increase marketplace competition.
- Microsoft: Microsoft’s Windows operating system falls under the regulations of the DMA, which changes the way the company promotes or allows users to avoid many applications and services within it. Microsoft is adapting by making several changes and states that these changes are currently being implemented on machines in the EEA markets.
- ByteDance: Chinese giant ByteDance is the only non-US company designated as a gatekeeper under the DMA, and its comprehensive service is TikTok. The company shared how TikTok plans to comply with the DMA. However, it is noteworthy that the company objects to being designated as a doorman and has a political dimension.