The European Union has reached an agreement on groundbreaking digital rules to curb online “gatekeepers” such as Google and Facebook’s parent company Meta.
EU officials later agreed on the wording of Brock’s Digital Markets Act late Thursday as part of a long-awaited review of digital regulations that will have a significant impact on the global technology market. The law, which still requires other approvals, aims to prevent the largest tech companies from dominating the digital market, even with the threat of fines and the possibility of the company breaking up.
The regulation targets companies that the law considers to be “gatekeepers,” that is, companies with a market capitalization of at least € 75 billion ($ 82 billion). At least 45 million monthly users. A “platform” like an app or social network. This includes well-known companies such as Google, Microsoft, Meta, Amazon and Apple, as well as smaller sites such as Booking.com.
This addresses concerns that apps will hit each other against the wall and require messaging services or social media platforms to “open and interoperate with smaller messaging platforms.” Technology companies will also face severe restrictions on using people’s data for targeted online advertising, which is a major source of revenue, such as Google and Facebook.
The new rules are how Europe is trying to curb the power of tech companies globally through antitrust investigations, strict regulations on data privacy, and onslaught of rules proposed in areas such as artificial intelligence. I emphasize whether I became a pacesetter.
“What we decided yesterday will start a new era of technology regulation,” European Union Rep. Andreas Schwab said at a press conference on Friday.
The European Consumer Organization (BEUC) welcomed the agreement and said it would help consumers by creating a fairer and more competitive digital market.
Tech companies weren’t that enthusiastic.
Apple is concerned that some of the Digital Markets Act “creates unnecessary privacy and security vulnerabilities for users, while others ban the claims of intellectual property that we invest heavily”. Said that.
Google said it would study the text and work with regulators to implement it. “We support many of DMA’s ambitions for consumer choice and interoperability, but we are concerned that some rules may reduce innovation and choices available to Europeans,” the company said. Says.
Amazon said it is considering what the rules mean to its customers. Facebook did not respond to the request for comment.
The law contains many eye-catching measures that can shake the way big tech companies operate.
Companies cannot rank their products or services higher than other products or services in online search results, nor can they reuse data collected from different services.
You may not combine your personal data with your targeted ads without “explicit consent.”
Messaging services and social media platforms need to work together to avoid the dominance of a small number of companies that already have large networks of users. This opens up the possibility for Telegram or Signal users to exchange messages with WhatsApp users, for example.
Violations can be punished with large fines. Up to 10% of the company’s annual income. Repeated violations can result in fines of up to 20% of global sales. This can amount to billions of dollars for wealthy Silicon Valley companies.
Negotiations between the European Parliament and the board of directors representing the 27 EU member states reached an agreement after months of consultation. Now it needs to be approved by the Board and the European Parliament.