EU Parliament Approves Antitrust Bill That Will Restrict Big Tech

EU parliament approves restrictions for Big Tech. (photo: doc. pixabay)

JAKARTA – European Union lawmakers have reached an agreement on how to target big tech companies (Big Tech), as part of a move to limit anti-competitive practices in the digital economy. The deal was reported by the Financial Times on Wednesday, November 17.

The main political party of the European Union Parliament approved a deal that would apply to companies with a market capitalization of at least 80 billion euros and offering at least one internet service, such as online search, the FT said, citing people with direct knowledge of the discussions.

The rules will attract more companies than previously thought into the EU's planned Digital Markets Act (DMA), a source from the Financial Times said. They also added that the EU plans to implement the law next year.

The DMA, proposed by the European Union's Antitrust Chief, Margrethe Vestager, last year, aims to limit the power of big tech companies with their do and don'ts list.

According to the Financial Times, the move will also help national competition authorities scrutinize tech company acquisitions against smaller competitors, amid concerns that Big Tech will acquire competitors at a low price, according to the FT.

Companies including Alphabet units of Google, Amazon, Apple, Facebook (Meta Inc), and Microsoft will be under its scope, along with China's Alibaba Group Holding.

The US government has also raised concerns that new rules will emerge at the expense of US companies.

EU representatives last week agreed that the European Commission would be the sole enforcer of the rules for this new technology.

EU ministers will formally ratify the agreement on November 25, as part of the bloc's joint position ahead of negotiations with EU lawmakers and the Commission on a draft rule known as the DMA before it can become law.