EU Issues New Regulations to Curb Big Tech Companies
Updated · Mar 25, 2022
Under the new rules agreed on by European lawmakers, the largest tech companies will change their business models. It will take effect from 2023.
Clamping Down on Monopoly
The European Union has taken aim at the biggest global tech companies with new regulations seeking to curb their dominance. The Digital Markets Act (DMA) will be adopted next year in European Union. It will look to clamp down on what many consider excesses by the biggest tech firms in the world.
“What we want is simple: Fair markets also in digital,” said Margrethe Vestager, the EU’s antitrust chief. “We are now taking a huge step forward to get there - that markets are fair, open, and contestable.”
Vestager first proposed the rules a year ago. It came from her frustration at “gatekeepers” accepting huge fines for monopolistic practices that changed little.
“The gatekeepers will now have to comply with a well-defined set of obligations and prohibitions. This regulation, together with strong competition law enforcement, will bring fairer conditions to consumers and businesses for many digital services across the EU.”
The DMA is the result of negotiations between the European Parliament and representatives of EU member states. It targets companies with huge market numbers, like Apple, Google, and Amazon. The scope covers WhatsApp, Facebook Messenger, iMessage, the App Store, Google Play, and other services run by Big Tech companies.
For instance, as part of the rules, Apple will have to allow third-party payment options on its App Store. In November last year, the firm appealed a US court order that tasked it to let developers add alternative payment systems.
To fall under the Act’s umbrella, a firm must have at least €7.5 billion in turnover in the EU over the last 3 years or:
- A market valuation of at least €75 billion
- At least 45 million monthly users
- 10,000 business users in the EU
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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