Facebook, Google And Apple To Be Forced To Cross-Platform Under EU Digital Markets Act

JAKARTA - Apple, Google, Facebook, and other technology companies may be forced to find solutions that allow users to connect across multiple messaging platforms. Today, each service has its own way of dealing with communications that are not compatible with the others. It even burdens the user when there is a need to reach someone using a different platform or service.

This universal method of communication will benefit the end-user, whether using an iPhone or Android phone, with Facebook, iMessage, or other social media applications. Cross-platform solutions work against existing models that social media and tech companies have accepted as standard, making their customers or users cycle back to the same company rather than switching between different services.

It's the same excuse for member gift cards at the grocery store and punch cards for free sandwiches at the grocery store. Retaining existing customers is much easier than recruiting new customers.

The European Parliament recently passed legislation against big tech companies like Apple, Google, and Facebook, requiring their messaging apps to allow communication with other services.

These three companies are not the only targets. However, smaller companies will have the opportunity to grow without meeting these higher standards. Any company with more than 45 million users in a month and having annual sales of 8 billion euros for three consecutive years will comply with this new rule if it is successfully passed by EU member states.

Since most of the companies affected by this bill, known as the Digital Markets Act, are US companies, the chances of DMA passing are good, although somewhat reduced.

Another interesting part of the EU Digital Markets Act is the protection of small companies that may feel pressure to sell to larger competitors. Known as a 'killer acquisition', this is similar to when Facebook bought Instagram, preventing what might be a strong challenger from having enough time to develop.

The same 'gatekeeper' companies that might be asked to find ways to make cross-platform communication possible will be limited in acquiring startups that show strong potential.

Amazon and Microsoft are also expected to be appointed gatekeepers and possibly as many as 25 other major tech companies. The Digital Markets Act won't take effect until around 2022 or possibly 2023.

The EU Parliament will begin negotiating the finer details with EU member states and the EU Commission as early as 2022. The EU Commission will work with national authorities for law enforcement, and penalties may be as high as 20 percent of total annual sales.

So if this law goes into effect, it will get the attention of every major tech company, including Apple, Google, and Facebook, because it's not a form of punishment that can be ignored.