Over the past six months, Google, Amazon, Apple, Microsoft, Meta, as well as TikTok owner ByteDance had frantically worked to comply with the historic EU tech regulations that take effect on Thursday. This has involved backroom engineering and a complete overhaul of online platforms.
One of the most extensive regulatory measures to control so-called “Big Tech” is the Digital Markets Act, also known (DMA), which is anticipated to transform the global technology sector following decades of unrestricted expansion. It appears that two of the six companies could be targeted by regulators for possible non-compliance in the upcoming months based on criticism from competitors, users, and watchdogs.
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All six of the largest tech companies risk penalties of as much as 10% of their worldwide revenue and legal action if they fail to comply with the EU’s deadline of this Thursday regarding the Digital Markets Act, also known (DMA).
The DMA, which compels the maker of the iPhone to loosen up its closed the environment and permit developers of software to release their apps to consumers within the European Union rather than through the company’s own App Store, is most detrimental to Apple (AAPL.O), opens a new tab.
However, EU antitrust the head Margrethe Vestager has already expressed concern about the implementation of new fees, like a “core technological advances cost” of 50 euros cents per account used annually, even if developers choose not to utilize the App Store of Apple or payment method.
After fining Apple 1.84 billion euros ($2 billion) for preventing Spotify (SPOT.N) from opening a new tab and displaying payment options outside of its App Store, Vestager stated on Monday that innovative fee structures shouldn’t lessen the incentives for companies to move to competitors. Apple said it would appeal the ruling, but it would not elaborate. Conversely, rivals like the Swiss email provider Proton have claimed that Apple has not gone far enough in its compliance efforts. The Commission said it would not comment.
Alphabet’s (GOOGL.O) opens new tab Despite dedicating thousands of technology engineers to its compliance efforts, the company has eight core platform offerings that are liable of the DMA, in addition to any other company. Google could potentially face an investigation.
Aggregators like Booking.com as well as Expedia (EXPE.O) will benefit from the company’s mandated redesign of its search results. As a result of their vigorous lobbying efforts with Google, these companies will open up new tabs and gain greater visibility and online traffic.
As a result of consumers being drawn to big online intermediaries, hotels, airlines, and restaurants have already experienced conflict. Some of them anticipate losing up to 50% of their web traffic as well as potentially hundreds of thousands of euros in revenue. Google said it would not comment.
Users of Instagram and Facebook will be prompted to consent to the sharing of their data between the two platforms, and there may also be a possibility of an investigation, according to a new tab opened by Meta (META.O). Meta opted not to respond.
According to people with knowledge of the situation, Microsoft (MSFT.O), Amazon (AMZN.O), and ByteDance may initially come under less scrutiny as EU regulators concentrate their efforts on a few instances and make sure a case strong enough to stand up to a legal challenge. ByteDance, Amazon, and Microsoft all declined to comment. Certain of the Major Six corporations themselves are also putting pressure on the EU to launch an investigation.
According to a person with firsthand knowledge of the situation, at least one has complained to the European Commission which it is unfair to be forced to follow the DMA regulations while a competitor breaks them. It takes years for EU antitrust investigations to be completed, but DMA enforcers only have a year to publish their conclusions.
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