The EU Digital Markets Act Is Officially Going After Big Tech

As of today, the EU Digital Markets Act is officially reinforceable, aiming to break anti-competitive practices with which Big Tech fortified its market power. The EU law aiming will undoubtedly bring significant changes to U.S. tech titans as it aims to regulate their behavior, primarily that of Alphabet Inc GOOG, Amazon.com Inc AMZN, Microsoft Corporation MSFT, Apple Inc AAPL and Meta META.

Law Put Into Practice

For Google, it means no longer being able to force Android users to select its own search engine. Messaging apps like that of Meta through Facebook Messenger, will need to allow users to message people using alternative offerings, by making their services interoperable with others. Meta already announced its Facebook Messenger and WhatsApp messaging apps can now work with third-party messaging services.

When it comes to app distribution, Apple will now have to deal with the fact that there will be alternative stores besides its AppStore on its iPhones. In addition, Apple got hit with a $1.96 billion fine this week for breaching competitive regulations with its AppStore practices. The fine could be interpreted as a sign of what is to come in a newly-regulated era for Big Tech. More specifically, the EU sides with Spotify that has long complained about Apple’sunfair restrictions as the iPhone maker prevented app developers to inform iOS users about alternative and cheaper music subscription offerings for almost a decade. However, Apple believes that it helped Spotify, who holds 56% of Europe’s music streaming market, become one of the most recognizable brands in the world, and it paid nothing to Apple for its services. But despite its fiery response to the verdict, Apple has found itself in a new reality. In January, Apple announced it will open up its iPhone and iPad App store to competitors in Europe, with the Digital Markets Act already threatening its lucrative app fees.

As for Amazon, it is forced to make changes to its online marketplace and advertising business. Amazon is now asking for permission to collect information from its EU users for making personalized ads. Amazon also committed to give advertisers new and expanded reports that will empower them to independently verify the success of their campaigns.

The Day That Big Tech Bent To The Rules It Fought Against

March 7th, 2024, will be remember as the day Big Tech learned to play by Europe’s rules. The Digital Markets Act will undoubtedly bring significant changes in how Big Tech serves their EU customers. But, the bigger picture is that today, Big Tech went from being an irresponsible ‘teenager’ to a ‘grown-up’ who, hopefully, will be held accountable for his actions. At the very least, Big Tech is now being forced to play nice, for a change.

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