European Digital Markets Act: Changes For Tech Giants

The Amazon logo is shown at the Vivatech show in Paris, June 15, 2023. New European Union rules aimed at preventing tech companies from dominating digital markets will change what people see on

Europeans will soon experience changes in their digital landscape as the Digital Markets Act (DMA) comes into effect, requiring six tech giants to comply with new regulations by midnight Wednesday. The DMA targets 22 services, including Google's Maps, YouTube, and Chrome browser, Amazon's Marketplace, Apple's Safari Browser and iOS, Meta's Facebook, Instagram, and WhatsApp, Microsoft's Windows and LinkedIn.

Under the DMA, companies face fines up to 20% of their annual global revenue for violations or even potential business breakups for repeated infringements. The DMA aims to make digital markets fairer and more contestable, setting a precedent for global digital regulation.

The DMA's impact is expected to resonate globally, with countries like Japan, Britain, Mexico, South Korea, Australia, Brazil, and India considering similar regulations to prevent tech dominance. Apple's decision to allow European iPhone users to download apps outside its App Store marks a significant change, albeit with added security concerns.

Fines up to 20% of annual revenue for violations under DMA.

DMA affects 22 services of six tech giants.

DMA aims to create fairer and more contestable digital markets.

Global impact expected with other countries considering similar regulations.

Consumers will now have more options online, with Android users able to choose their default search engine and iPhone users selecting their preferred browser. Microsoft will no longer enforce the use of its Edge browser, promoting user choice. However, concerns remain that users may stick with familiar options due to lack of awareness about alternatives.

Internet searches will also see changes, with Google search results displaying additional booking sites for certain queries, as the DMA prohibits favoritism towards a company's own services. Users will have the option to opt-out of targeted advertising based on their online activity, with Google and Meta offering data privacy controls.

The DMA also mandates messaging systems to be interoperable, with Meta expected to propose a solution for Facebook Messenger and WhatsApp users to exchange messages seamlessly. The DMA represents a significant step in digital regulation, with its influence likely to extend beyond the EU as other countries consider similar measures.