EU Enforces Sweeping Changes for Big Tech Companies

AFP/APP
Brussels: The largest digital corporations worldwide will be obligated to comply with stringent EU regulations aimed at fostering fairness in the online market on Tuesday.
In September, the European Union identified six “gatekeepers” and 22 of their platforms, such as Facebook, Instagram, and LinkedIn, which are required to adhere to these regulations.
This list is anticipated to expand as companies like Booking and X, owned by Elon Musk, have informed the European Commission of meeting the gatekeeper criteria.
Here are five key regulations outlined in the law that will compel these tech giants to modify their practices.
Tech giants generate substantial profits annually, part of which is used for acquiring startups and innovators, a practice criticized by authorities for stifling potential competition.
Under the new rules, all acquisitions, regardless of size, must be reported to the European Commission.
In response to concerns regarding Meta’s market dominance despite scandals affecting Facebook, the Digital Markets Act (DMA) mandates interoperability between messaging apps while ensuring encrypted communications.
Amazon, a significant online marketplace for numerous companies, faces accusations of leveraging its platform to favor its own products.
The DMA prohibits this conflict of interest and requires gatekeepers to share vital information with business clients.
Apple’s strict control over its App Store, including limitations on payment systems and app downloads, will be challenged by the DMA, despite Apple’s security concerns.
This move aims to promote fair competition among app developers and digital companies.
Google and Meta’s advertising dominance will be addressed by the DMA, compelling them to provide advertisers and publishers with more transparency regarding ad performance and data usage.
This transparency could potentially reduce dependence on these platforms for customer insights and encourage diverse advertising strategies.
Non-compliance with the DMA could result in significant fines, emphasizing the importance of adhering to these regulations.