Europeans using their phones and computers now have more options when it comes to choosing default browsers and search engines, as well as where to download iPhone apps and how their personal online data is utilized.
The Digital Markets Act, a set of European Union regulations, mandates that six tech companies – Amazon, Apple, Google parent Alphabet, Meta, Microsoft, and TikTok owner ByteDance – be labeled as “gatekeepers” and comply with certain changes by midnight on Wednesday.
Europe has enacted the DMA as part of their efforts to regulate and control the power of big tech companies, solidifying their position as a worldwide leader in this area. Leading tech companies have complied, albeit with some hesitation, and have adjusted their practices, including Apple’s decision to allow users to download apps from sources other than their own App Store.
The recently implemented regulations have expansive yet unclear objectives of creating more equitable and competitive digital markets. They are taking effect as global initiatives to regulate the technology sector are gaining momentum.
The Digital Markets Act will operate in the following manner:
Which corporations are required to adhere to the regulations?
The DMA will target a total of 22 services, including operating systems, messenger apps, and social media platforms, for regulation.
These services consist of Google’s Maps, YouTube, Chrome browser, and Android OS, as well as Amazon’s Marketplace and Apple’s Safari Browser and iOS.
Facebook, Instagram, and WhatsApp from Meta, along with Windows and LinkedIn from Microsoft, are all encompassed.
The companies are at risk of being fined a significant amount, up to 20% of their annual global revenue, for multiple offenses. This could potentially result in billions of dollars in penalties, or even a potential breakup of their businesses due to “systematic infringements.”
How will the rules impact globally?
The Digital Markets Act represents a significant achievement for the 27-member European Union, which has a history of leading the way globally in regulating the tech sector.
In the past, the bloc has imposed large fines on Google for antitrust violations, implemented stringent guidelines for filtering social media content, and established groundbreaking regulations for artificial intelligence.
Now, places such as Japan, Britain, Mexico, South Korea, Australia, Brazil and India are drawing up their own versions of DMA-like rules aimed at preventing tech companies from dominating digital markets.
According to Bill Echikson, a senior fellow at the Center for European Policy Analysis, a think tank based in Washington, there are already imitators emerging worldwide. He also believes that the DMA will be widely accepted as the primary means of regulating digital practices in democratic countries.
Zach Meyers, the assistant director at the Center for European Reform in London, stated that officials will be seeking guidance from Brussels.
He stated that should the DMA prove effective, numerous Western nations may attempt to adopt it in order to prevent fragmentation and the potential failure of implementing a different method.
What changes can be expected in the process of downloading apps?
One of the major updates from Apple is its decision to allow European iPhone users to download apps from sources other than its pre-installed App Store on their mobile devices.
The company has been hesitant to make this change, as a significant portion of its income is derived from the 30% commission it receives for payments made through iOS apps, such as for Disney+ subscriptions. Apple has cautioned that allowing apps to be downloaded from external sources could pose potential security threats.
Apple has announced that it will reduce the fees it charges app developers in Europe who choose to use Apple’s payment-processing system. However, they will implement a new fee of 50 euros per iOS app installed through third-party app stores, which has been criticized for potentially discouraging developers of free apps (who currently do not pay any fees) from leaving Apple’s system.
Avery Gardiner, Spotify’s global director of competition policy, questioned the rationale behind choosing to join a platform that requires a 50 cent fee per user. She expressed doubt that alternative app stores would ever succeed, as they would be lacking a significant number of apps that are necessary for consumers to find the store appealing.
Gardiner stated that this is completely contradictory to the intended purpose of the DMA.
The actions of tech companies will be carefully monitored and evaluated by Brussels.
The European Union’s competition commissioner, Margrethe Vestager, stated this week that in her 10 years in the role, she has come across numerous antitrust cases and encountered many attempts to circumvent established regulations with clever tactics.
What can individuals do to access additional choices on the internet?
Customers will not be compelled to accept predetermined options for essential services.
Users of Android can select their preferred search engine as the default, while iPhone users will be able to pick their preferred browser as their primary. Europeans will encounter selection screens on their devices. On the other hand, Microsoft will no longer compel individuals to utilize its Edge browser.
The concept is to prevent individuals from being influenced to use Apple’s Safari browser or Google’s Search app. However, smaller competitors are concerned that they may face more negative consequences than they did previously.
According to Christian Kroll, the CEO of Ecosia, a search engine based in Berlin, users may be inclined to choose familiar options since they are not familiar with other choices.
Ecosia is advocating for Apple and Google to increase the amount of details provided about alternative options in the selection screens.
According to Kroll, if individuals are not informed about other options, it is unlikely that they will choose one. Kroll also expressed support for the DMA, but is unsure if it will meet expectations.
What will be the impact of internet searches?
Certain search results on Google may appear differently due to the DMA prohibiting companies from prioritizing their own services.
An additional feature, called a “carousel,” will now be included when searching for hotels, showing various booking sites like Expedia. The button for Google Flights will no longer appear on the search results page, but the site will still be accessible through the regular blue links.
Individual users will also be able to choose to opt out of having their online behavior analyzed for personalized advertisements.
Google users now have the option to prevent their data from being shared among the company’s services in order to receive more targeted ads.
Meta is allowing users to separate their Facebook and Instagram accounts so their personal information can’t be combined for ad targeting.
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
