European users of smartphones and computers will be presented with additional options this week in terms of default browsers and search engines, downloading iPhone applications, and controlling their personal data usage online.

The Digital Markets Act, a set of regulations established by the European Union, mandates that six tech giants – Amazon, Apple, Google’s parent company Alphabet, Meta, Microsoft, and TikTok’s owner ByteDance – comply with changes identifying them as “gatekeepers” by midnight on Wednesday. All related notifications and comments will be returned in English.

Europe recently implemented the DMA, adding to a string of regulations aimed at curbing the power of major tech companies in the global market. As a result, these tech giants have begun to make changes to their traditional methods of conducting business. For instance, Apple now permits users to download smartphone apps from sources other than just its App Store.

The latest regulations have general, yet unclear objectives of creating greater fairness and competition in the digital market. These rules are being implemented as more countries are stepping up their efforts to regulate the technology industry.

Let’s examine the functionality of the Digital Markets Act:

Which rules do companies need to adhere to?

The DMA will be targeting 22 different services, including operating systems, messaging apps, and social media platforms.

The services comprise of Google products such as Maps, YouTube, Chrome, and Android system, along with Amazon’s Marketplace and Safari Browser and iOS from Apple.

Meta’s Facebook, Instagram and WhatsApp are included as well as Microsoft’s Windows and LinkedIn.

The firms are at risk of significant penalties, potentially reaching 20% of their yearly worldwide earnings, for continual breaches. This could result in billions of dollars in fines or, in extreme cases, the dismantling of their operations for persistent violations.

What impact will the rules have on a global scale?

The Digital Markets Act is a fresh milestone for the 27-nation European Union in its longstanding role as a worldwide trendsetter in clamping down on the tech industry.

The coalition has previously imposed significant penalties on Google in antitrust lawsuits, implemented strict guidelines to improve social media, and is introducing groundbreaking regulations on artificial intelligence.

Currently, countries such as Japan, Britain, Mexico, South Korea, Australia, Brazil, and India are creating their own variations of DMA-like regulations with the purpose of limiting the dominance of tech corporations in the digital market.

Bill Echikson, a senior fellow at the Washington-based think tank Center for European Policy Analysis, stated that there are already imitators emerging worldwide. He believes that the DMA will establish itself as the primary standard for regulating digital activity in democratic countries.

According to Zach Meyers, an assistant director at the London-based think tank Center for European Reform, officials will seek guidance from Brussels.

“He stated that if the DMA proves successful, numerous Western nations may attempt to implement it in order to prevent fragmentation and the possibility of pursuing alternative strategies that may not yield positive outcomes.”

What changes can be expected in app downloading methods?

Apple has announced a major alteration that will give European iPhone users the ability to download applications from sources other than the pre-installed App Store on their mobile devices.

The corporation has resisted this action for some time, as a significant portion of its earnings comes from the 30% commission it receives from payments, like those for Disney+ subscriptions, made through iOS applications. Apple has cautioned that allowing apps to be downloaded from external sources would introduce additional security threats.

Apple will now reduce the fees it receives from app developers in Europe who choose to remain in the company’s payment-processing system. However, they will now charge a 50-euro cent fee for every iOS app that is installed through third-party app stores. Critics believe this will discourage numerous free apps, whose developers are currently exempt from fees, from switching to other platforms.

Avery Gardiner, who is Spotify’s global director of competition policy, questions the appeal of a scenario in which individuals are charged a 50-cent fee per user. She believes that alternative app stores will struggle to gain popularity because they will not have access to a significant number of apps that customers desire.

Gardiner stated that goes against the intended goal of the DMA.

The tech companies’ compliance will be closely examined by Brussels.

After a decade in the role, Margrethe Vestager, the head of EU competition, stated that she has encountered numerous antitrust cases and has observed a significant amount of resourcefulness in finding ways to bypass the established regulations.

In what ways can individuals access additional choices through the internet?

Consumers will not be compelled to select default options for important services.

Android users can pick which search engine to use by default, while iPhone users will get to choose which browser will be their go-to. Europeans will see choice screens on their devices. Microsoft, meanwhile, will stop forcing people to use its Edge browser.

The objective is to prevent individuals from being prompted to use Apple’s Safari browser or Google’s Search app. However, smaller competitors are concerned that they may end up in a worse position than before.

According to CEO Christian Kroll of Ecosia, a Berlin-based search engine, users tend to stick with familiar options and may not know about other alternatives.

Ecosia has been advocating for Apple and Google to provide more details about competing services on the choice screens.

According to Kroll, if individuals are not aware of their options, it is unlikely that they will choose an alternative. Kroll also mentions being a strong advocate for the DMA, but is uncertain if it will yield the desired outcome.

What can we expect to see in the evolution of internet searches?

Certain search results on Google may appear differently due to the DMA prohibiting companies from prioritizing their own services.

As an illustration, when searching for hotels, an additional “carousel” of booking websites such as Expedia will now appear. Additionally, the Google Flights option on the search result screen will be eliminated and the website will be included in the list of blue links on search result pages.

Users will also be given the choice to opt out of targeted advertising that utilizes their online behavior for profiling.

Google customers now have the option to halt the sharing of their personal data among all of the company’s services, resulting in improved accuracy of targeted advertising.

Meta is now giving users the option to disconnect their Facebook and Instagram accounts in order to prevent their personal data from being used for targeted ads.

The DMA also requires messaging systems to be able to work with each other. Meta, which owns the only two chat apps that fall under the rules, is expected to come up with a proposal on how Facebook Messenger and WhatsApp users can exchange text messages, videos and images.

Source: voanews.com