- The new Digital Markets Act (DMA) rules to curb the impact of the services of big tech firms and make them more accessible are finally in effect.
- This law primarily targets tech firms like Google, Microsoft, Amazon, Apple, Meta, and TikTok.
- The main objective of these new policies is to level the playing field between these dominant tech firms and newer ones in the market.
Finally, it’s here. The European Union’s (EU) new DMA (Digital Markets Act) has finally been finalized. This act will be a companion to the already existing DSA (Digital Services Act) – an act that puts regulations for the type of content shared on websites.
Aimed to curb the power of the dominant big tech firms, these new policies are put in effect to make the services of all tech firms, big and small, more accessible. Plus, it also takes a dig at balancing the market shares of these big tech firms and new firms.
These flaws will allow Big Tech Gatekeeper firms to tie us all up in court for years, and make it less likely that the Commission ever take purpose limitation off the shelf as the essential tool to understand and deal with Gatekeeper firms.— Johnny Ryan (@johnnyryan) April 14, 2022
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The DMA is primarily aimed at six of the biggest tech companies – Google, Microsoft, Amazon, Apple, Meta, and TikTok. Due to their dominating presence in the digital markets, 22 services provided by these six firms will be affected by the DMA.
While the DMA will make their services more accessible to more users, it also forces them to change their business model to abide by the DMA. Here are the services of these firms affected by the DMA, which will be put in full effect from early 2024.
- Alphabet (Google): Google Search, YouTube, Android OS, Google Chrome, Google Ads, Google Play, Google Maps, Google Shopping
- Apple: Safari Browser, iOS, Apple App Store
- Amazon: Amazon Marketplace, Amazon Ads
- Meta: Facebook. Instagram, WhatsApp, Messenger, Meta Sds, Marketplace
- Microsoft: Windows OS, LinkedIn
- ByteDance: TikTok
These firms have been given six months to set up their business models as per the new DMA guidelines. Failure to do so will result in a hefty fine of 10% of their annual turnover. However, these firms can go to court to settle DMA Violations as well if they believe their services follow the guidelines.