Seven of the world’s tech giants have declared themselves “gatekeepers” under the new European Digital Markets Act (DMA). This law aims to ensure competition and fairness in Europe’s digital markets. From now on, the “guardians” must follow a strict set of rules.
Image source: Pixabay
“Gatekeepers” or “gatekeepers” as defined in the Digital Markets Act (DMA) are large online platforms that are important intermediaries between business users and consumers. They have significant bargaining power, allowing them to act as private regulators and create bottlenecks in the digital economy. The aim of the DMA is to ensure competition and fairness in digital markets. To deal with guard dominance, the DMA establishes a set of rules for them to follow.
Seven of the world’s largest technology companies have officially recognized themselves as “Guardians” under the European Digital Markets Act (DMA). The list includes Alphabet (Google), Amazon, Apple, ByteDance (TikTok), Meta* (Facebook*Instagram*, WhatsApp), Microsoft and Samsung. These companies have a market capitalization of over €75 billion and own a social platform or app with at least 45 million monthly users or 10,000 active business users.
In a statement by EU Internal Market Commissioner Thierry Breton, he said that he “will review corporate applications and appoint gatekeepers for certain platform services through September 6After that, companies have six months to comply with the rules of the DMA. Earlier, the same EU commissioner coordinated measures on state regulation of AI technologies and discussed the introduction of a total ban on Huawei’s involvement in the construction of 5G networks. Reuters reports that TikTok’s parent company, ByteDance, has challenged the listing, noting that Booking.com, in contrast, has told regulators it intends to be listed next year.
According to Breton, the new rules cover several key points that tech giants can no longer meet:
- Keep users in your ecosystem.
- decide which applications should be pre-installed on users’ devices and which app store they should use;
- engaging in “self-preference”: exploiting the role of “guardian” by treating one’s goods and services more favorably;
- Limit the compatibility of your messengers with others.
Violations of these rules are punishable by a fine of up to 10% of the company’s total worldwide turnover, and up to 20% for repeat offenders. Repeated violations can also lead to the Commission “opening an investigation and, if necessary, imposing behavioral or structural sanctions”.
Apple, which claims the new law will create unnecessary privacy and security vulnerabilities for users of Apple products, is reportedly planning to allow third-party app stores in iOS 17, albeit with possible restrictions, such as allowing only in Europe or the introduction of mandatory security requirements. .
Last week meta* offered an interesting approach to attracting users in Europe. She announced that she would allow them to download apps directly from Facebook.*. This underscores the company’s flexibility in approaching new legislation and its willingness to look for creative ways to engage users.
It seems that tech giants are beginning to realize that to thrive in the new regulated digital space, they need to be more proactive in adapting and embracing change. The adaptation phase can be challenging, but opens up opportunities for a new competition based on innovation and ease of use.
“
* It is included in the list of public associations and religious organizations for which the court issued a final decision to liquidate or ban activities on the grounds provided for in Federal Law No. 114-FZ of July 25, 2002 “On Combating Extremists”. has met activity”.
Add Comment