Menu
The Digital Markets Act is the European Union's response to the holding of digital power, which, until now, was in the hands of the biggest digital companies. Under the leadership of Thierry Breton, European Commissioner for Digital Affairs, this regulation seeks to re-establish competition on digital platforms, offering users more options, and a fairer environment for competing businesses.
The DMA specifically targets "access controllers", defined as companies that exercise control over user access to certain digital platforms. Currently, six companies are concerned: Alphabet (the parent company of Google and YouTube), Amazon, Apple, Meta, ByteDance (owner of TikTok), and Microsoft.
The major changes introduced by the DMA focus on increasing choice and transparency for users. From now on, smartphones will have to allow the installation of competing app stores, giving consumers a wider range of options. For example, iPhone users will be able to download applications from stores other than Apple's App Store.
In addition, the DMA aims to strengthen the protection of users' personal data, by requiring gatekeepers to obtain users' consent before using their data in other services. This provision aims to limit the proliferation of excessive data collection practices, and ensure that users remain in control of their personal information.
To ensure compliance with these new rules, there are considerable financial penalties for not doing so. Fines can reach up to 10% of a company's total worldwide sales, with penalty payments of up to 5% of daily sales. These penalties are designed to deter companies from violating the rules set out by the DMA.
Major tech companies have reacted in different ways to the DMA's entry into force. Some have already announced changes to comply with the new rules, while others have expressed concerns about the potential implications for their business models. For example, Google has indicated that it will remove the Maps button from its search results to comply with the DMA's requirements, while Apple has unveiled plans to update iOS to comply with the regulation's provisions.
Thierry Breton concludes, "If the proposed solutions are not good enough, we will not hesitate to take strong measures."
The titans have been warned.
