LAGOS, Nigeria (VOICE OF NAIJA) – The European Union has singled out 22 “gatekeeper” services operated by six of the world’s largest tech companies, subjecting them to fresh regulations in its ongoing crackdown on Big Tech.
The comprehensive Digital Markets Act (DMA) will be applied to services offered by Alphabet, Amazon, Apple, Meta, Microsoft, and ByteDance, the parent company of TikTok.
Viewed by many as a complement to the Digital Services Act (DSA), which places greater responsibilities on tech firms for content shared on their platforms, the DMA is intended to level the playing field between Big Tech giants and smaller competitors.
These tech titans now have a six-month window to adhere to the DMA’s provisions, which are designed to enhance access and service compatibility in Europe. This presents an unprecedented challenge to the business models of these companies.
The DMA categorizes companies with over 45 million monthly active users and a market capitalization of 75 billion euros ($82 billion) as gatekeepers providing core platform services.
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These entities must ensure interoperability with rival messaging apps and allow users to select which apps to pre-install on their devices.
Among the designated gatekeepers, Google, with its services like Android, Maps, and Search, faces more stringent regulations.
Similarly, Meta’s services, including Facebook, Instagram, Marketplace, and WhatsApp, fall under the gatekeeper classification.
Non-compliant companies can face fines of up to 10% of their annual global turnover for DMA violations.
Gatekeepers can seek interim measures to suspend the application of the rules, but this requires initiating legal proceedings in the EU Court of Justice in Luxembourg.
Following the introduction of the Digital Services Act, Zalando took legal action against the Commission in June.
EU Industry Chief Thierry Breton declared, “It’s D-Day for #DMA! The most impactful online companies will now have to play by our EU rules.”
Microsoft accepted its gatekeeper designation, while Meta, Google, and Amazon spokespersons stated that they were reviewing the designations. Apple and TikTok expressed reservations.
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TikTok disagreed fundamentally with the decision and voiced disappointment that no prior market investigation had been conducted. Apple expressed concern about the privacy and data security risks posed by the DMA.
Apple had previously raised concerns that the DMA would lead to the increased installation of apps not sourced from Apple’s App Store, a practice known as “side-loading.”
The Commission has exempted Alphabet’s Gmail, Microsoft’s Outlook, and Samsung’s browser, as these companies provided justifications demonstrating that these services do not qualify as gatekeepers.
The Commission has also initiated four market investigations to further evaluate Microsoft’s and Apple’s submissions regarding the classification of certain core platforms, such as Bing, Edge Microsoft Advertising, and Apple’s iMessage services, as gateways.
An Apple spokesperson emphasized that iMessage is designed and marketed for personal consumer communications, asserting that it falls outside the scope of the DMA.