Tech giants subject to new anti-competitive rules by the EU
The rules of the game are changing for digital giants. The European Union has decided to go a step further in regulating the anti-competitive practices of large technology companies. Alphabet, Amazon, Apple, Meta (formerly Facebook) and Microsoft, as well as Chinese company ByteDance, owner of TikTok, will now be subject to new, stricter rules set by the EU.
The Digital Markets Act aims to prevent abuse of dominant position and promote competition in the digital market. This new legislation will put in place a more restrictive framework for digital giants, who will have to comply with certain obligations and prohibitions under penalty of financial penalties of up to 20% of their worldwide turnover.
The list of companies affected includes major social networks such as TikTok, Instagram, Facebook and LinkedIn. Operating systems such as Android, iOS and Windows are also included, as well as instant messengers such as WhatsApp and Messenger. Chrome and Safari browsers as well as Google search engines and intermediation services such as Google Maps, Google Play, Google Shopping, Amazon Marketplace, App Store and Meta Marketplace are also affected by these new rules.
The objective of this regulation is to promote the emergence of new start-ups and to improve the services offered to consumers. By making these changes, the EU hopes to create an environment where competition is encouraged and where no player can take advantage of a dominant position to crowd out others.
This new legislation marks a turning point in the way Europe approaches the regulation of tech giants. Instead of long and complex legal proceedings, the EU has decided to adopt a more proactive and faster approach. The most powerful digital players will have to comply with the new rules and provide detailed reports on their compliance by the deadline of March 6, 2023.
The regulations also include measures such as interoperability of messaging services, requiring WhatsApp and Messenger to allow users to communicate with other competing platforms such as Signal. Google will be banned from favoring its own services in its search engine results, while Amazon will no longer be able to use data generated by its corporate clients to compete with them.
Although some companies have already expressed concerns about these new rules, the EU is determined to enforce these measures strictly. It wishes to establish a balance between innovation and competition, in order to guarantee a fair digital market for all the players concerned.
In conclusion, the rules of the game are changing for the digital giants. Under the impetus of the EU, new anti-competitive rules will be put in place to promote competition and prevent abuse of a dominant position. The companies concerned will have to comply with these rules under penalty of financial penalties. The EU’s objective is to create an environment conducive to the emergence of new start-ups and the improvement of services for consumers. It remains to be seen how the tech giants will react to these new regulations and what impact this will have on the digital market.