dma – Dataconomy https://dataconomy.ru Bridging the gap between technology and business Wed, 06 Nov 2024 09:42:59 +0000 en-US hourly 1 https://dataconomy.ru/wp-content/uploads/2025/01/DC_icon-75x75.png dma – Dataconomy https://dataconomy.ru 32 32 EU fines Apple for violating Digital Markets Act https://dataconomy.ru/2024/11/06/eu-fines-apple-for-violating-digital-markets-act/ Wed, 06 Nov 2024 09:42:59 +0000 https://dataconomy.ru/?p=59851 Apple Inc. is set to face the first-ever fine under the European Union’s Digital Markets Act (DMA) for anti-competitive practices related to its App Store according to a Bloomberg report. This penalty comes as part of a broader effort by EU regulators to curb the power of tech giants like Apple in the digital marketplace. […]]]>

Apple Inc. is set to face the first-ever fine under the European Union’s Digital Markets Act (DMA) for anti-competitive practices related to its App Store according to a Bloomberg report. This penalty comes as part of a broader effort by EU regulators to curb the power of tech giants like Apple in the digital marketplace. Reports indicate that Apple’s restrictive policies, which prevent app developers from directing users to cheaper purchasing options outside of the App Store, have triggered the upcoming fine. This article explores the potential impacts, industry response, and the broader implications for Big Tech.

What is the Digital Markets Act, and how does it impact Apple?

The DMA, a regulatory measure introduced by the European Union, is designed to address the competitive practices of major tech companies before they can damage markets. Unlike traditional antitrust measures that often react to abuses after they occur, the DMA aims to prevent monopolistic practices proactively. It enables the European Commission to impose significant penalties, including fines of up to 10% of a company’s global annual revenue for initial offenses and up to 20% for repeat violations.

For Apple, this fine is a direct result of what the EU calls “anti-steering” practices. The DMA prohibits tech giants from limiting app developers’ options for directing users to external payment methods, thereby bypassing Apple’s mandatory 30% fee on in-app purchases. Margrethe Vestager, the European Union’s competition commissioner, has warned Apple since June to comply with these rules or face penalties—a warning now likely to materialize as a substantial fine.

How large could Apple’s DMA fine be?

While the exact amount of the fine has not been disclosed, DMA guidelines suggest it could be substantial. Apple’s reported revenue last year was $94.9 billion, meaning a fine could reach up to $9.4 billion, based on the DMA’s 10% rule for initial violations. For a repeat offense, Apple could face penalties as high as $38 billion—an unprecedented figure in tech regulation.

This penalty would follow the EU’s €1.84 billion ($2 billion) fine imposed on Apple in March for similar violations tied to its App Store policies. The Digital Markets Act is designed to allow the EU to act swiftly and decisively, as seen with Apple’s case. The Commission may announce the fine as soon as this month before Vestager leaves office, marking a decisive enforcement of the new regulations.

EU fines Apple for violating Digital Markets Act
This isn’t the first time Apple has come under scrutiny in the EU (Image credit)

What does this mean for Big Tech?

Apple’s upcoming fine under the DMA is likely to reverberate throughout the tech industry. Other major players like Google, Amazon, and Meta are closely watching this case, as it sets a strong precedent for the DMA’s enforcement. The Digital Markets Act, with its heavy fines and preventative approach, signals a new era of tech regulation where the EU is prepared to hold companies accountable for restrictive practices on their platforms.

As industry analysts point out, this fine is a wake-up call for companies relying on closed ecosystems and high fees. The DMA effectively demands that Big Tech adapt to a more open and competitive environment or risk losing market share in the EU. Google, for example, has already made changes to its policies to comply with the DMA, particularly by allowing third-party app stores on Android. Apple, however, has largely maintained its strict App Store policies, setting up a significant clash with regulators.

EU’s ongoing battle with Apple

This isn’t the first time Apple has come under scrutiny in the EU. Vestager, known for her firm stance against tech monopolies, has clashed with Apple multiple times during her tenure. One of the most prominent cases involved a €13 billion ($14.4 billion) tax repayment order to Ireland, which Apple fiercely contested. The case marked a significant escalation in the EU’s regulatory approach, as it sought to crack down on tax arrangements that it considered unfair.

The EU’s scrutiny extends beyond tax and app store practices. Earlier this year, Apple faced additional regulatory pressure when the EU required it to open the iPhone’s NFC payment chip to third-party applications, a move that allowed competitors to offer alternative payment solutions to Apple Pay. These cases underscore the EU’s commitment to reducing Apple’s dominance over the digital ecosystem, giving consumers more freedom and promoting competition.

EU fines Apple for violating Digital Markets Act
Apple’s fine under the DMA is just the beginning of what may become a more intense regulatory environment in the EU and potentially beyond (Image credit)

Will Apple comply with the DMA or challenge the fine?

The looming question is how Apple will respond to this latest fine. While Apple has not issued a public statement, it may pursue a dual approach: compliance in certain areas while lobbying for policy amendments. The company has historically argued that its App Store policies protect users’ privacy and security, a position it could use to negotiate for exceptions under the DMA. However, with the DMA’s uncompromising stance, the EU seems less inclined to entertain such arguments.

One potential compliance step Apple might take is to allow limited external payment links within apps. This would enable developers to direct users to cheaper subscription options outside the App Store, reducing Apple’s 30% fee impact while still retaining control over its platform. Apple has made similar concessions in other regions, such as Japan and South Korea, indicating that compliance in the EU may not be off the table.

Long-term implications for the tech industry

Apple’s fine under the DMA is just the beginning of what may become a more intense regulatory environment in the EU and potentially beyond. As regulators enforce the DMA, Big Tech firms may need to adjust their business models to operate within these stricter guidelines. For Apple, this could mean a gradual loosening of its app ecosystem control, which may ultimately reshape the company’s revenue structure. The App Store is a major income source, generating billions annually; therefore, any change in policy may impact Apple’s financial performance over time.

In the broader industry context, the DMA’s enforcement on Apple could inspire similar regulatory moves in other regions. Lawmakers in the United States, for instance, are already debating similar measures aimed at curbing Big Tech’s power.


Featured image credit: Medhat Dawoud/Unsplash

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Meta’s ‘pay or consent’ policy has led to a second DMA investigation, following Apple’s https://dataconomy.ru/2024/07/01/meta-dma-investigation-pay-or-consent/ Mon, 01 Jul 2024 14:36:24 +0000 https://dataconomy.ru/?p=54330 Meta’s “pay or consent” policy has led to a second Digital Markets Act (DMA) investigation, marking another significant moment in the European Union’s ongoing efforts to regulate big tech companies and ensure fair competition. The DMA, which came into effect in March 2023, was designed to prevent large digital “gatekeepers” from abusing their dominant market […]]]>

Meta’s “pay or consent” policy has led to a second Digital Markets Act (DMA) investigation, marking another significant moment in the European Union’s ongoing efforts to regulate big tech companies and ensure fair competition.

The DMA, which came into effect in March 2023, was designed to prevent large digital “gatekeepers” from abusing their dominant market positions.

In the spotlight now is Meta, the parent company of Facebook and Instagram, whose recent practices have drawn the scrutiny of EU regulators.

A flashback to Apple’s encounter with the DMA

Apple was the first major tech company to face charges under the DMA. The European Commission’s investigation into Apple revolved around its App Store practices, which allegedly hindered fair competition. Apple’s “steering” practices, which restricted developers from informing customers about alternative purchasing options outside the App Store, were a key issue. The Commission found these restrictions problematic as they prevented developers from freely communicating with their customers about potentially cheaper offers. This, combined with excessive fees imposed on developers, raised significant concerns about Apple’s compliance with the DMA.

Meta DMA investigation pay or consent
Apple was the first major tech company to face charges under the DMA for its App Store practices (Image credit)

The Commission also examined Apple’s “link-out” process, which allowed developers to include a link in their app redirecting customers to a web page for purchasing. The conditions imposed on these link-outs were deemed overly restrictive and seen as barriers to effective competition. Moreover, Apple’s contractual terms for developers, including a “Core Technology Fee,” were put under scrutiny to ensure they met the DMA’s requirements. The investigation into Apple’s practices set a precedent for the Commission’s approach to enforcing the DMA, highlighting the EU’s commitment to curbing the power of digital gatekeepers.

Meta under the microscope

Following Apple’s investigation, Meta found itself under similar scrutiny for its “pay or consent” policy.

This policy, implemented on Facebook and Instagram, offers users a binary choice: either consent to Meta tracking their data for targeted advertising or pay a subscription fee to use the platforms without ads.

The European Commission’s preliminary findings suggest that this approach does not comply with the DMA. The regulator argues that Meta’s binary choice forces users to consent to the combination of their personal data and fails to provide a less personalized but equivalent version of its social networks.

Meta DMA investigation pay or consent
The European Commission’s preliminary findings suggest Meta’s policy does not comply with the DMA (Image credit)

The DMA aims to ensure that users have a real alternative when it comes to their data privacy. According to Article 5(2) of the DMA, gatekeepers must obtain users’ consent before combining their personal data across services. Meta’s dominant position in social networking allows it to extract more data from users, giving its ad business an unfair advantage over competitors. The Commission’s investigation found that Meta’s approach does not offer a free and fair choice to users who do not consent to tracking, as the subscription fee option is not a valid equivalent to free access.

What if?

The stakes for Meta in this investigation are high.

Failure to comply with the DMA could result in significant penalties, including fines of up to 10% of its global annual turnover, and even 20% for repeat offenses. More importantly, the outcome of this investigation could force Meta to abandon its current business model, which relies heavily on surveillance advertising. This would have far-reaching implications not only for Meta but for the entire adtech industry, which has long depended on targeted advertising based on user data.

The EU’s goal with the DMA is to level the playing field by targeting the advantages that gatekeepers exploit through their dominance.

Meta DMA investigation pay or consent
Non-compliance with the DMA could lead to significant fines for Meta (Image credit)

In Meta’s case, the ability to combine data across its services gives it an edge in the ad market. The Commission’s preliminary view is that a subscription-based alternative does not meet the DMA’s requirement for a free equivalent service. Instead, Meta could be compelled to offer a free, less personalized version of its platforms that respects user privacy and provides a genuine alternative to data tracking.

Meta’s response and the path forward

In response to the Commission’s findings, Meta has defended its “pay or consent” policy by citing an earlier EU court judgment.

Meta argues that offering a subscription for no ads complies with the DMA and follows the direction of the highest court in Europe. However, the European Commission officials counter that the court’s judgment suggested that a paid version could only be offered “if necessary,” and Meta has not justified why a fee is essential in this context. The officials also pointed out that Meta could offer contextual advertising, which does not rely on personal data, as a free alternative.

As the investigation continues, Meta will have the opportunity to respond formally to the preliminary findings. The European Commission has set a 12-month timeline to complete the probe, aiming to conclude it by or before March 2025. The Commission’s enforcement actions against Meta are part of a broader strategy to ensure compliance with the DMA and protect consumer rights. Privacy advocacy and consumer protection groups have been instrumental in bringing Meta’s practices to the Commission’s attention, emphasizing the need for regulatory oversight in the digital marketplace.


Featured image credit: Dima Solomin/Unsplash

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Apple makes history as the first company charged with violating EU’s DMA rules https://dataconomy.ru/2024/06/24/apple-dma-violation-charge/ Mon, 24 Jun 2024 14:30:15 +0000 https://dataconomy.ru/?p=54034 Apple is the first company charged with violating the European Union’s Digital Markets Act (DMA) rules. This landmark event is a significant development in the ongoing efforts to regulate digital markets and ensure fair competition within the EU. The DMA, which came into force in March 2023, aims to curb the market dominance of big […]]]>

Apple is the first company charged with violating the European Union’s Digital Markets Act (DMA) rules. This landmark event is a significant development in the ongoing efforts to regulate digital markets and ensure fair competition within the EU. The DMA, which came into force in March 2023, aims to curb the market dominance of big tech companies, ensuring that smaller businesses have the opportunity to compete fairly. Apple’s alleged violations of these rules highlight the ongoing challenges in achieving these goals.

Executive Vice-President of the European Commission EU Fit for Digital Age and Commissioner for Competition Margrethe Vestager has shared the news with the following words on X:

What did the Digital Markets Act defend?

The DMA was introduced by the European Commission as a regulatory framework to address the imbalance of power between large digital “gatekeepers” and smaller market participants. These gatekeepers, defined by the EU as companies with a significant impact on the internal market, providing a core platform service, and having an entrenched and durable position, are subject to specific obligations under the DMA. These obligations include ensuring that smaller companies can operate and compete on fair terms without being subject to unfair practices by the gatekeepers.


New App Store rules from Apple, same old concerns for developers


Apple, one of the most influential tech companies globally, was designated as a gatekeeper due to its significant market presence and control over its App Store. The App Store is a critical platform for app developers, providing them with access to millions of potential customers. However, the rules governing the App Store have been under scrutiny, with allegations that they hinder fair competition and limit the ability of developers to reach consumers through alternative channels.

Apple’s alleged DMA violations

The European Commission’s preliminary findings indicate that Apple’s App Store rules are in breach of the DMA. Specifically, the Commission has raised concerns about Apple’s “steering” practices. Under the DMA, developers should be able to inform customers of alternative purchasing options outside the App Store, including cheaper options. However, Apple’s current rules restrict developers from providing this information within their apps. This limitation prevents developers from freely communicating with their customers about alternative offers.

Moreover, the Commission’s findings suggest that Apple’s “link-out” process, which allows developers to include a link in their app that redirects customers to a web page for purchasing, is overly restrictive. The conditions imposed by Apple on these link-outs are seen as barriers to effective communication and competition. For instance, developers are prohibited from promoting offers or concluding contracts through their preferred distribution channels, which limits their ability to reach consumers effectively.

Apple DMA violation charge
The DMA, implemented in March 2023, aims to curb the market power of big tech companies (Image credit)

The Commission also highlighted that the fees Apple charges developers for purchases made within seven days after a link-out from the app are excessive. These fees go beyond what is considered necessary for Apple’s remuneration, placing an additional financial burden on developers and potentially deterring them from using alternative channels to reach their customers.

New non-compliance investigations

In addition to the preliminary findings on Apple’s steering rules, the European Commission has opened a new non-compliance investigation into Apple’s contractual terms for developers. This investigation focuses on Apple’s “Core Technology Fee” and other new requirements that developers must meet to access certain features enabled by the DMA. The Core Technology Fee, which charges developers €0.50 per installed app, is under scrutiny to determine if it complies with the DMA’s necessity and proportionality requirements.

The investigation will also examine the steps required for users to download and install alternative app stores or apps on iPhones. Apple’s multi-step process and the various information screens displayed to users during this process may create obstacles that hinder the effective implementation of the DMA’s provisions. Additionally, the eligibility requirements that developers must meet to offer alternative app stores or distribute apps directly from the web will be assessed for compliance with the DMA.

These investigations reflect the European Commission’s commitment to enforcing the DMA and ensuring that gatekeepers like Apple adhere to its requirements. The outcome of these investigations could have significant implications for Apple’s business practices and the broader digital market landscape.

Background and implications

The designation of Apple as a gatekeeper and the subsequent investigations are part of a broader effort by the European Commission to regulate digital markets and promote fair competition. Alongside Apple, other major tech companies such as Alphabet, Amazon, Meta, and Microsoft have also been designated as gatekeepers and are subject to the DMA’s obligations. These companies control key digital platforms that serve as gateways for businesses and consumers, making their compliance with the DMA crucial for achieving its objectives.

Apple DMA violation charge
The fees Apple charges developers for purchases after a link-out are deemed excessive (Image credit)

The potential penalties for non-compliance with the DMA are severe. The European Commission can impose fines of up to 10% of a gatekeeper’s total worldwide turnover, with the possibility of increasing this to 20% for repeated infringements. In cases of systematic non-compliance, the Commission can also mandate additional remedies, such as requiring the sale of parts of the business or banning the gatekeeper from acquiring new services related to the non-compliance.

As the first company charged with violating the DMA, Apple’s case will be closely watched by regulators, industry stakeholders, and other gatekeepers. The outcome of this case could set a precedent for how the DMA is enforced and shape the future of digital market regulation in the EU. It underscores the ongoing efforts to create a fair and competitive digital market, where smaller businesses have the opportunity to thrive without being stifled by the dominance of a few large players.


Featured image credit: Emre Çıtak/Bing Image Generator

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EU cracks a whip on big tech: Apple, Meta, and Google face DMA probes https://dataconomy.ru/2024/03/25/eu-apple-meta-google-face-dma-probes/ Mon, 25 Mar 2024 12:04:49 +0000 https://dataconomy.ru/?p=50284 The European Commission is probing Apple, Google, and Meta for possibly violating the Digital Markets Act, focusing on practices within app stores, search engines, browser choices, and advertising models. Officials express a need for compliance to ensure Europe’s digital markets remain open and competitive. Investigations also target Apple’s new app distribution fees and Amazon’s product […]]]>
  • The European Commission is probing Apple, Google, and Meta for possibly violating the Digital Markets Act, focusing on practices within app stores, search engines, browser choices, and advertising models. Officials express a need for compliance to ensure Europe’s digital markets remain open and competitive.
  • Investigations also target Apple’s new app distribution fees and Amazon’s product favoritism. Meta has extra time to integrate Messenger with other services. Companies face fines up to 20% of global revenue for repeat violations.
  • Apple’s compliance is under scrutiny, especially its fee structure for alternative app stores on iOS, which critics say could inhibit developers from using platforms other than Apple’s App Store, potentially limiting the Digital Markets Act’s intended benefits.

The European Commission is initiating investigations into five instances of potential non-compliance by Apple, Google, and Meta under its new Digital Markets Act (DMA) antitrust regulations, as confirmed by the authority today.

What’s happening behind the scenes?

“We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA. We will now investigate the companies’ compliance with the DMA, to ensure open and contestable digital markets in Europe,” stated Margrethe Vestager, the European Union’s antitrust chief.

Specific areas of scrutiny include the examination of Google and Apple’s restrictions against directing users to payment methods outside of their app stores, and the investigation into whether Google unfairly prioritizes its own services in its search results. The investigation will also cover Apple’s method for offering browser choices on iOS, alongside Meta’s advertising targeting model that requires user payment or consent. During a media briefing, the Commission indicated its intention to complete these investigative processes within the coming year.

EU cracks whip on big tech: Apple, Meta, Google face DMA probes
Specific areas of scrutiny include the examination of Google and Apple’s restrictions against directing users to payment methods outside of their app stores

Furthermore, the European regulatory body is scrutinizing Apple’s proposed fees for app distribution outside its official App Store, and is investigating whether Amazon is giving unfair advantage to its own products on its platform. Additionally, it has been disclosed that Meta has received a six-month extension to ensure its Messenger service can operate with other messaging platforms.

“We are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses. Should our investigation conclude that there is lack of full compliance with the DMA, gatekeepers could face heavy fines,” EU Commissioner Thierry Breton remarked.

After the investigations, the Commission plans to inform each implicated party of the necessary corrective actions to resolve any issues, along with the specific steps the Commission intends to implement. In instances of non-compliance, the involved companies could incur penalties amounting to up to 10 percent of their global yearly revenue, as per the DMA regulations, or even up to 20 percent for repeated offenses.

This month marked the commencement of compliance requirements under the DMA for the six leading technology firms identified as gatekeepers. Obligations now include allowing users to switch default applications and remove pre-installed software of the gatekeepers, prohibiting the preferential display of their own services over competitors, and facilitating the use of third-party app marketplaces.

EU cracks whip on big tech: Apple, Meta, Google face DMA probes
After the investigations, the Commission plans to inform each implicated party of the necessary corrective actions to resolve any issues

Margrethe Vestager, the EU’s head of competition, previously conveyed to Reuters the Commission’s intent to meticulously assess Apple’s adherence to the regulations amid apprehensions that the company may, in practice, deter the utilization of the DMA’s advantages.

This statement comes in the wake of intense scrutiny directed at Apple’s compliance with the Digital Markets Act. While the firm has begun to permit alternative app stores on its iOS platform, in line with the new mandates, it has introduced a revised fee model. Critics argue that this change is likely to deter developers from offering their applications through channels other than the Apple App Store.


Image credits: Kerem Gülen/Midjourney

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New App Store rules from Apple, same old concerns for developers https://dataconomy.ru/2024/03/08/new-app-store-rules-and-changes-apple/ Fri, 08 Mar 2024 15:34:34 +0000 https://dataconomy.ru/?p=49730 Apple, famous for its tightly controlled App Store experience on iOS and iPadOS devices, recently implemented a series of last-minute policy changes that have generated a wave of mixed reactions from the developer community. Apple, which has been under fire from the DMA, was recently required to introduce iOS sideloading changes and alternative app stores. […]]]>

Apple, famous for its tightly controlled App Store experience on iOS and iPadOS devices, recently implemented a series of last-minute policy changes that have generated a wave of mixed reactions from the developer community.

Apple, which has been under fire from the DMA, was recently required to introduce iOS sideloading changes and alternative app stores. Today, the tech giant has made some more changes to the App Store’s policy to comply with the DMA’s new rules.

While some developers see these updates as a positive step towards increased transparency and flexibility, others remain wary of the potential limitations and persisting concerns surrounding in-app purchase fees.

Apple App Store changes

Apple wants to increase the transparency surrounding how in-app purchase options work.

In response to this change, developers will be required to clearly explain what users will get when making in-app purchases. They must also show how those purchases might differ in pricing or functionality compared to buying directly from the developer’s website or alternative platforms.

Rules about how apps deal with non-fungible tokens (NFTs) are now more clearly defined. Apps are permitted to allow users to view and browse their NFT collections. However, any transactions related to buying or selling NFTs within an app must continue to use Apple’s in-app purchase systems – and will, therefore, incur the associated commission fees.

New App Store rules and changes Apple
Apple recently implemented new App Store policy changes in response to regulatory pressure (Image credit)

Developers gain a new option with the ability to create ‘unlisted apps’. These apps cannot be found through standard searches on the App Store. Instead, users will need a direct link from the developer in order to access and install the app. This feature could potentially allow for more private or specialized app distribution models.

While not a direct change to the App Store itself, Apple appears to be relaxing longstanding restrictions on third-party browser engines. This change could have significant long-term impacts on how apps and web-based experiences can function and interact within the iOS ecosystem.

Where is the catch?

While some of these changes provide new opportunities, a significant sticking point remains—Apple’s in-app purchase commission. Developers who facilitate in-app transactions are subject to Apple’s commission, often up to 30% of the sale price.

This cut into revenue has been a consistent source of contention amongst developers, with some opting to either avoid in-app features or raise prices to offset the costs.

What are developers saying?

The response from the developer community to these changes has been varied.

Some developers express deep frustration with the continued obligation to utilize Apple’s in-app purchase systems. Many consider the commission fees exorbitant and an unnecessary burden on their businesses.

Others, while not thrilled about the commissions, understand Apple’s perspective. They recognize that Apple provides a valuable platform and marketplace for their apps.

Developers see the potential in ‘unlisted apps’ and possible future relaxation of browser engine rules. These changes could open doors for specialized app distribution and more unique web-based experiences within the iOS ecosystem.

New App Store rules and changes Apple
Developer responses to the App Store changes are mixed (Image credit)

DMA ‘rules’

Apple’s adjustments to App Store policies don’t occur in a vacuum. The company faces intense antitrust scrutiny and mounting legal pressure in numerous territories and DMA decisions on gatekeepers have led to lots of changes for tech giants.

As a matter of fact, all six designated gatekeepers, Alphabet, Apple, Amazon, Meta, Microsoft, and ByteDance, had to go through a series of changes.

Here is a quick rundown:

Alphabet (Google)

  • Customers will have upfront options to select their preferred search engine and web browser on their Android devices
  • Google Search will include more prominent links to comparison websites when customers look for things like flights or hotels
  • Customers will have clearer choices about how their data is shared across Google products like YouTube, Search, and their advertising network

Apple

  • While likely with restrictions, iOS will start allowing app installation from sources other than Apple’s App Store
  • Customers will be able to use web browsers not built on Apple’s WebKit technology and choose their default browser
  • Apps beyond Apple Pay will be able to use NFC technology for contactless payments

Meta

  • Customers might gain the option to pay a fee to get an ad-free Facebook and Instagram experience
  • Meta is gradually rolling out more options for customers to control how their data is used for things like targeted advertising
  • Meta is working to allow messaging between WhatsApp and other platforms, but the timeline is uncertain

Amazon

  • Customers will be explicitly asked for consent to use their data for personalized advertising
  • Advertisers will get more detailed reports about their ad placements and related fees
  • Advertisers will get a way to verify their campaigns’ success in a way that aims to prioritize customer privacy
New App Store rules and changes Apple
DMA’s recent decisions have big tech companies straightening their ties (Image credit)

Microsoft

  • Customers will be able to disable Bing search within Windows, uninstall Edge, and use other search tools
  • Companies can add their own content to the Windows Widget board

ByteDance (TikTok)

  • Customers will be able to move their TikTok data (like posts and followers) to other apps more easily
  • Customers will get a better tool for downloading their personal TikTok information in bulk

How the policy changes will continue to evolve is uncertain but one thing is clear: Pressure for greater flexibility and autonomy will persist.

It’s up to the mentioned gatekeepers to balance its desire for control with the increasing demands from developers, regulators, and ultimately, their users.


Featured image credit: Zhiyue/Unsplash.

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Tech giants acknowledge gatekeeper roles under the EU Digital Markets Act https://dataconomy.ru/2023/07/05/digital-markets-act-eu/ Wed, 05 Jul 2023 09:04:51 +0000 https://dataconomy.ru/?p=37761 The new EU Digital Markets Act will include seven tech companies that will go under the name of “gatekeepers.” These seven tech companies include Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft, and Samsung. The European Commission has received notifications from seven businesses, most of which are American IT behemoths, stating that they satisfy the requirements to […]]]>

The new EU Digital Markets Act will include seven tech companies that will go under the name of “gatekeepers.” These seven tech companies include Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft, and Samsung.

The European Commission has received notifications from seven businesses, most of which are American IT behemoths, stating that they satisfy the requirements to be categorized as “gatekeepers” under the Digital Markets Act (DMA).

ByteDance, the owner of TikTok, Alphabet, Amazon, Apple, Meta, Microsoft, and Samsung, have all affirmed that they satisfy the requirements imposed by the European Union when it enacted the new regulation.

Booking.com anticipates achieving gatekeeper status by the end of the year and will notify the appropriate authorities by that time, according to Reuters.

Digital markets act, eu
The European Union DMA will be led by seven companies (Image Credit)

Breton gave insight into the EU Digital Markets Act

According to a statement made by European Union commissioner Thierry Breton, the corporations will have just six months to adhere to the DMA’s regulations after it “will now check their submissions and designate the gatekeepers for specific platform services by 6 September.”

Breton said that the new rules include these key points:

  • They will no longer be able to lock in users in their ecosystem.
  • They will no longer be able to decide which apps you need to have pre-installed on your devices; which app store you have to use.
  • They will not be able to “self-preference”: exploiting the advantage of being the gatekeeper by treating their own products and services more favorably.
  • Their messaging apps will have to interoperate with others.

Gatekeepers are businesses having at least a €7.5 billion ($8.16 billion) yearly revenue in Europe over the previous three fiscal years or businesses with a fair market value of at least €75 billion ($81.6 billion) in at least three European Union member states.

Additionally, they must have provided services to more than 45 million active end users each month and more than 10,000 active business users each year in the European Union during the previous three years.

Since the legislation is intended to include significant online platforms that serve as “gatekeepers” in digital marketplaces, as its name implies, these requirements were created to include the major companies in the industry.

What is the EU Digital Markets Act?

A ground-breaking European regulation called the Digital Markets Act (DMA) aims to stop giant internet platforms from abusing their market dominance by connecting customers to information, products, and services.

According to the European Union, strong regulation of large technological firms—the so-called gatekeepers of the digital economy—will increase competition and choice, foster greater innovation, improve quality, and drive down costs.

The DMA, which was initially suggested in December 2020 and is scheduled to take effect in 2023 completely, can result in significant fines, the potential for being compelled to sell off assets, or even the prohibition from conducting business within the European Union.

Digital markets act, eu
Companies that can’t meet the regulations will be fined (Image Credit)

The sanctions make it a potentially game-changing piece of legislation, even if it only applies within the European Union. It might have significant effects on Big Tech and how we use the internet.

Companies that violate the regulations might be fined up to 10% of their total annual global revenue, 20% for repeat offenders, and the commission could “open a market investigation and, if necessary, impose behavioral or structural remedies” as a result of repeated failures.

The new rule, according to Apple, “will create unnecessary privacy and security vulnerabilities for our users,” and the company allegedly planned to enable third-party app shops in iOS 17 with various limits like only permitting them in Europe or requiring security criteria.

Featured image credit: Guillaume Périgois on Unsplash

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