What are the new EU rules for Big Tech?

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New EU Rules Target Big Tech Gatekeepers to Ensure Fairer Digital Markets

The European Union has reached a provisional agreement on new legislation, the Digital Markets Act (DMA), designed to regulate large technology companies and foster more open and competitive digital markets. These rules will impose specific obligations on designated "gatekeeper" platforms, compelling them to alter certain business practices to prevent anticompetitive behaviour. The legislation aims to conclude lengthy antitrust investigations by setting clear ex-ante rules for these dominant digital players.
Scope and Application of the Digital Markets Act

The DMA will apply to online gatekeepers that exert significant control over data and access to their platforms. This designation covers a broad spectrum of digital services, including online intermediation services, social networks, search engines, operating systems, online advertising services, cloud computing, video-sharing services, web browsers, and virtual assistants. The criteria for a company to be designated as a gatekeeper include a market capitalization of €75 billion, an annual turnover of €7.5 billion, and at least 45 million monthly users within the EU.
Key Obligations for Gatekeeper Platforms

Under the DMA, gatekeeper platforms will be subject to several stringent requirements. These include mandates to ensure interoperability of their messaging services, granting business users access to the data they generate on the platform, and allowing these business users to promote competing products and services. Furthermore, the rules will prohibit gatekeepers from unfairly favouring their own services over those of rivals and from preventing users from uninstalling pre-installed software or applications.
Penalties for Non-Compliance

Companies found to be in breach of the DMA's provisions will face substantial financial penalties. The legislation stipulates fines of up to 10% of a company's annual global turnover for violations. For repeat offenses, this penalty can escalate to as much as 20% of their annual global turnover, providing a strong incentive for compliance.
Concerns Raised by Tech Giants

Major technology firms, including Apple and Google, have voiced concerns regarding the potential ramifications of the DMA. Apple has expressed apprehension that certain provisions may introduce unnecessary privacy and security vulnerabilities for users and could restrict their ability to monetize intellectual property. Google, while supporting some of the DMA's objectives, has indicated worries that the rules could stifle innovation and reduce consumer choice within the European market, stating a need to study the final text and ensure compliance.

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What are the new EU rules for Big Tech?

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