EU Intensifies Regulation of Big Tech One Year In

AFP/APP

Brussels: If 2024 is already proving to be a challenging year for major tech companies in the European Union, the coming months could bring even more scrutiny as the bloc ramps up its enforcement of new regulations.

Since August 2023, the EU has implemented its most stringent tech regulations to date, showing no signs of easing its approach.

Brussels marked a significant milestone in August by compelling TikTok to permanently remove an “addictive” feature from a European spinoff app, a year after the Digital Services Act (DSA) came into force.

This followed a series of regulatory actions in the summer targeting major players such as Apple, Meta, and Microsoft.

The EU’s regulatory efforts are driven by two key pieces of legislation: the DSA, which mandates online content moderation, and the Digital Markets Act (DMA), which imposes specific business conduct rules on large tech firms.

Since the DMA’s enforcement began in March, the EU has notably pressured Apple to relent in a dispute with Fortnite creator Epic Games over its app store policies.

Stephanie Yon-Courtin, an EU lawmaker focused on digital issues, praised the European Commission’s efficiency, noting that it is effectively implementing the DMA with limited resources and within a tight timeframe, unlike previous lengthy competition cases.

Jan Penfrat, senior policy advisor at online rights group EDRi, points to visible changes, such as the DSA granting users the “right to complain” about content removal and the DMA enabling users to choose their browsers and search engines via choice screens.

He anticipates further enforcement actions, especially concerning Apple’s compliance with the DMA.

Apple remains a focal point of contention, with the company facing formal accusations in June of breaching DMA regulations. Unless Apple addresses these charges, it could face substantial fines.

In response, Apple announced adjustments to its App Store on August 8, although some smaller tech firms have criticized these changes as “confusing.”

The EU’s resolve will soon be tested with X (formerly Twitter), as regulators are set to decide in September whether the platform should adhere to DMA requirements. X’s owner, Elon Musk, has clashed with EU digital chief Thierry Breton over disinformation and hate speech regulations, with potential fines or a complete ban looming if violations continue.

EU competition chief Margrethe Vestager emphasized that Brussels is moving at “full speed” to resolve competition issues within a maximum of 12 months under the DMA. However, companies can challenge fines or decisions in EU courts, potentially extending legal battles for years.

Apple has cited “regulatory uncertainties” as a reason for delaying new AI features in Europe, a movie EDRi’s Penfrat criticizes as an attempt to pressure the EU into leniency.

Meanwhile, tech lobby group CCIA Europe argues that rather than focusing on punitive measures, the EU should foster open dialogue with companies.

Undeterred, the EU continues to tighten its grip, potentially extending DMA curbs to X and adding platforms like Telegram to its list of “very large” entities subject to the DSA’s strictest rules.

The EU is also scrutinizing AI developments, including Microsoft’s $13 billion investment in OpenAI, signaling its intent to oversee every corner of the digital landscape.