How EU’s new rules force Big Tech into legal bind

Big Tech's worst nightmare is US antitrust plans (1)

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The EU has tightened the reins on the tech behemoths, pushing them into a potential legal quagmire. New regulations rolled out by the European body have effectively pulled the rug out from under companies like Apple, Google, TikTok, and WhatsApp, spotlighting them in the European quest to leash the unchecked power of big tech.

Big Tech’s New Dance with EU Rules

The European juggernaut’s latest initiative, the Digital Markets Act (DMA), unfurled its list of “gatekeepers”, comprising of world-renowned tech giants: Apple, Microsoft, Google, Amazon, Meta, and ByteDance, the company behind the popular TikTok platform. And let me tell you, the lineup is both impressive and intimidating.

These “gatekeepers” aren’t getting off easy. The EU demands these services become more interoperable with competitors and mandates data sharing with rivals. If they dare sidestep these stipulations, they could be slapped with fines so massive; we’re talking billions of dollars. It’s clear: the EU’s intent is not just to tame but to reclaim the tech landscape for enhanced competition.

Taking a closer look, the 22 services the EU has put under scrutiny include some of our everyday staples. From Apple’s iPhone operating system and Safari browser to Meta’s Instagram and Messenger, and from Google’s ever-present Maps and YouTube to Amazon’s sprawling marketplace. Interestingly, Samsung, another tech titan, managed to elude this classification. Sneaky or smart? You decide.

Further deep dives are expected. The European Commission, always up for a challenge, is debating the inclusion of Apple’s iMessage and a trio of Microsoft services. And just when you thought they were done, there’s also the matter of Apple’s iPad operating system to deliberate upon.

The Criteria and Implications for Tech Titans

But let’s not get lost in the weeds. The big question is: who exactly is a “gatekeeper”? The DMA has some criteria. These services should boast a yearly turnover surpassing €7.5bn, maintain a market value over €75bn, and engage at least 45 million monthly active users in the EU. But, as always, there’s wiggle room, as the EU regulators hold discretion to interpret beyond these metrics.

Microsoft and Apple, never ones to be silenced, have already fired their opening salvos. Microsoft claims Bing, despite its vast reach, shouldn’t be treated in the same vein as Google Search. Apple, meanwhile, contends that iMessage’s numbers don’t qualify for the new constraints.

However, these big tech behemoths can’t relax just yet. From this point, they’ve got a ticking clock. They have half a year to demonstrate their compliance, especially concerning new legalities involving data merging from various services and the restriction against favoring their products on their platforms.

And don’t think this is the end of it. By the time we welcome next spring, these companies have another hurdle to clear: presenting a compliance report, laying out in black and white how they’re toeing the line. Fines could devour up to 10% of their global turnover if they err. A hefty price, indeed!

Meanwhile, the drama unfolds as Margrethe Vestager, an ex-competition commissioner, ventures into newer territories, leaving her competition portfolio for Belgian commissioner Didier Reynders.

The EU’s latest rules and the subsequent responses from big tech not only showcase the shifting sands of the tech industry but also highlight the increasingly tumultuous relationship between regulatory bodies and tech giants. As the battle lines are drawn and redrawn, it’s evident that this is just the beginning of a long, intricate dance.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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