The European Union Sets New Rules For Big Tech As Part Of The Latest Enforcement

Head of EU Industry, Thierry Breton (photo: Twitter @ThierryBreton)

The European Union has designated 22 "doorkeepers" services run by six of the world's largest tech companies to comply with new rules as part of its latest crackdown on Big Tech.

The diverse Digital Markets Act (DMA) law will apply to services from Alphabet, Amazon, Apple, Meta, Microsoft, and TikTok owner ByteDance.

The DMA, widely regarded as a companion to the Digital Services Act (DSA), which provides more responsibility to technology companies linked to content shared on their websites, is designed to equalize the company's Big Tech to smaller competitors.

Giant tech companies now have six months to comply with DMA provisions, aimed at improving access and service compatibility in Europe, and challenging these company business models unprecedentedly.

Under DMA, companies with more than 45 million monthly active users and a market cap of 75 billion euros (Rp1,244.7 trillion) are considered doorkeepers providing core platform services.

Companies labeled like that will be required to create their messaging apps with interoperability with competitors and allow users to decide which apps to install previously on their devices.

Alphabet's Google has the highest number of services, including the Android, Maps, and Search operating system, which will face stricter rules. Meta's Facebook, Instagram, Marketplace, and WhatsApp also qualify as doorkeepers.

Companies that fail to comply with their obligations may be fined up to 10% of their annual global turnover for DMA violations.

Doorkeepers can ask for temporary action to suspend the implementation of the rules, but they need to file a legal case at the EU Justice Court in Luxembourg to do so, senior Commission officials said. "We haven't seen anything like that so far."

After the introduction of separate legislation, the Digital Services Act, Zalando sued the Commission in June.

"This is Day D for #DMA!," said EU Industry Head Thierry Breton, on platform X, formerly known as Twitter. "The most impacting online company will now have to play according to our EU rules."

It’s D-Day for #DMA!The most impactful online companies will now have to play by our EU rules.#Gatekeepers are:AlphabetAmazonAppleByteDanceMetaMicrosoftDMA means more choice for consumers.Fewer obstacles for smaller competitors.Opening the gates to the Internet🇪🇺 pic.twitter.com/xaTluUfBax

— Thierry Breton (@ThierryBreton) September 6, 2023

It's D-Day for #DMA!The most impactful online companies will now have to play by our EU rules. #Gatekeepers are:AlphabetAppleByteDanceMetaMicrosoftDMA means more choice for consumers.Fewer objects for smaller competitors.Opening the gate to the Internetmen'spic.twitter.com/xaTluufBax

The Microsoft Spokesperson's Mixed Reaction said the company received their doorkeeper status, while Meta, Google, and Amazon spokeswomans said they were reviewing the appointment.

Apple and TikTok are less than welcome. TikTok said it "basely disagrees with this decision" and was "disappointed that no market investigations were carried out before this decision," adding that they were considering further steps.

Apple's spokesperson said the company remains "very concerned about the privacy and security risks of the data generated by the DMA for our users."

The iPhone maker has previously expressed concern that the DMA will cause more app installations that are not through Apple's App Store, or "side-loading".

"The Commission must balance the need to protect user safety and privacy with the real risk that the doorkeeper app store will use security and privacy reasons to weaken their adherence to DMA's obligations," said Sovroula Vryna, partner at law firm Clifford Chance.

Alphabet's Gmail, Microsoft's Outlook, and Samsung's browser were excluded after the companies provided convincing arguments showing that these services did not qualify as doorkeepers, the Commission said.

The Commission has also opened four additional market investigations to better assess submissions from Microsoft and Apple showing that some of their core platforms such as Bing, Edge, and Microsoft Advertising, as well as Apple's iMessage services, are not eligible as doorkeepers.

"iMessage is designed and marketed for private consumer communications, and we hope to explain to the commission why iMessage is beyond the scope of DMA," said an Apple spokesperson.