Updated March 7th, 2024 at 11:45 IST

EU tech rules prompt big tech rush as investigations loom

Failure to adhere to the DMA guidelines by the EU's deadline could result in fines of up to 10% of the companies' global turnover.

Reported by: Business Desk
European Union | Image:Pexels

EU tech rules: In the face of imminent enforcement of the Digital Markets Act (DMA) by the European Union, major tech players including Google, Apple, Amazon, Microsoft, Meta, and ByteDance have hustled over the past six months to align with the landmark regulations set to take effect on Thursday.

The DMA, hailed as one of the most sweeping regulatory initiatives targeting "Big Tech," is poised to reshape the global technology landscape following years of unchecked expansion. 


Despite concerted efforts by these companies, concerns from competitors, users, and regulatory authorities suggest that some may fall under scrutiny for potential non-compliance in the near future.

Failure to adhere to the DMA guidelines by the EU's deadline could result in fines of up to 10 per cent of the companies' global turnover. Apple faces major implications under the DMA, particularly in opening its closed ecosystem to allow app developers to distribute their products independently within the EU. 


However, recent fee adjustments by Apple, such as the introduction of a "core technology fee," have raised eyebrows at the EU antitrust division.

Google, with its extensive portfolio of core platform services subject to the DMA, may also face investigation despite notable efforts to comply. 


The mandated restructuring of search results could favour aggregators like Booking.com and Expedia, leading to potential conflicts with sectors like hospitality and travel.

Similarly, Meta's data-sharing policies across Instagram and Facebook pose potential risks, while Microsoft, Amazon, and ByteDance may initially face less scrutiny as regulators prioritise cases with strong legal footing.


Even within the tech industry, pressure mounts for fair enforcement of DMA rules, with companies urging the European Commission to ensure a level playing field among competitors.

Unlike traditional antitrust investigations, DMA enforcers have a shorter window to conclude their inquiries, setting the stage for swift regulatory action in the evolving tech landscape.


(With Reuters Inputs)


Published March 7th, 2024 at 11:45 IST