The European Union has selected 22 “gatekeeper” services operated by six of the world’s largest tech companies, Microsoft, Apple, Amazon, Meta, Alphabet, and TikTok owner ByteDance, to comply with new regulations under the Digital Markets Act (DMA). The DMA aims to equalize the playing field between big tech companies and smaller rivals and gives tech titans six months to comply. Companies with a market value of 75 billion euros ($82 billion) and over 45 million monthly active users serve as gatekeepers, providing a core platform service under the DMA. Infractions of the DMA can result in fines of up to 10% of the violating company’s annual global turnover.
Overhaul Is Coming for Big Tech Firms
When a company receives a “gatekeeper” designation from the EU, it must make its service compatible with competitors and allow users to choose which apps to pre-install on their gadgets.
“Gatekeeper” services under Digital Markets Act
In its most recent crackdown on Big Tech, the European Union selected 22 so-called “gatekeeper” services operated by six of the largest tech companies in the world and subjected them to new regulations. Microsoft, Apple, Amazon, Meta, Alphabet, and TikTok owner ByteDance will all be subject to the comprehensive Digital Markets Act (DMA).
Supplement law to the Digital Services Act
The DMA evolved to equalize the playing field between Big Tech companies and smaller rivals and frequently appears as a supplement law to the Digital Services Act (DSA), which places higher obligations on tech companies for the content shared on their websites.
Tech titans get six months
In Europe, The DMA, which aims to enhance the accessibility and connectivity of services and presents a novel obstacle to these firm business models, gave the tech titans six months to comply with its requirements.
Allow customers to choose pre-installed apps
Companies with a market value of 75 billion euros ($82 billion) and more than 45 million monthly active users serve as gatekeepers, providing a core platform service under the DMA. Businesses with this designation must integrate their messaging apps with those of competitors and allow customers to choose which apps they want pre-installed on their devices.
Services that would be subject to stricter regulations
Most services provided by Alphabet’s Google, which also offers the Android operating system, Maps, and Search, would be subject to more stringent rules. Gatekeepers included Meta’s Facebook, Instagram, Marketplace, and WhatsApp.
Digital Markets Act could request a temporary suspension
Infractions of the DMA can result in fines of up to 10% of the violating company’s annual global turnover. “Gatekeepers could request a temporary suspension of the rules’ application, but they would first need to file a lawsuit in the EU Court of Justice in Luxembourg,” according to a senior Commission official.
Zalando sued the Commission in June after the distinct laws, the Digital Services Act. EU industry chief Thierry Breton proclaimed on X, formerly known as Twitter, “It’s D-Day for #DMA!” The most significant online businesses will soon have to follow our EU regulations.