Tensions Rise as the EU Investigates Big Tech
The European Commission is gearing up to finalize several investigations aimed at Big Tech, particularly as US tech giants pressure the EU to adopt a more lenient regulatory approach. This situation comes as the two-year anniversary of the Digital Markets Act (DMA) approaches, a set of regulations designed to foster fair competition among online platforms. As the EU prepares to conclude its probes into industry leaders like Apple, Meta, and Alphabet, the dynamics may shift with the inauguration of the Trump administration.
Big Tech’s Compliance Under Scrutiny
In September 2023, the European Commission identified six major “gatekeepers” under the DMA: Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft, which impact 22 core platform services. These companies were given six months to comply with regulations aimed at enhancing user choice and freedom. However, the upcoming Trump administration could complicate matters. Some tech CEOs have voiced their opposition to stringent EU regulations and altered their content moderation policies in the U.S., raising concerns about compliance with the Digital Services Act (DSA), which targets illegal content and the protection of minors online.
EU’s Commitment to Enforcement
Henna Virkkunen, the EU Commissioner for Tech Sovereignty, Security, and Democracy, reaffirmed the Commission’s commitment to enforcing both the DSA and DMA, emphasizing the need for all businesses operating in Europe to adhere to the established rules. Political analysts suggest that the transition to a Republican administration may heighten tensions over the DSA, particularly concerning misinformation governance, while the DMA’s implications remain largely focused on the companies themselves.
Leadership Changes in the EU Commission
The leadership of the EU Commission is set to change as well, with Teresa Ribera taking over the DMA responsibilities from Margrethe Vestager. Ribera will juggle multiple portfolios, including antitrust concerns, climate, and industrial policies. Observers are left wondering if this shift will influence the EU’s approach to digital regulation. Meanwhile, tech lobbyists express concerns that the DMA’s implementation has drifted from its original objectives, advocating for a more focused and less politicized approach.
Ongoing Investigations and Potential Consequences
The Commission’s investigations into potential DMA violations began in March 2024, with preliminary findings already sent to Apple and Meta regarding their practices. Apple faced scrutiny for rules governing its App Store that allegedly restrict developers from directing consumers to alternative channels. Similarly, Meta’s requirement for users to either pay for services or share their data raises compliance questions. Should any of these tech giants be found non-compliant, they could face fines reaching 10% of their global revenue, increasing to 20% for repeated violations. Meanwhile, more inquiries are underway concerning Apple’s browser restrictions and Amazon’s practices regarding its own products. As investigations progress, the Commission emphasizes the need for a strong legal position to ensure success in court.
SOURCE: Ref Image from Euronews
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