The European Union (EU) has unveiled new digital regulations that specifically target major global tech giants, including Apple, Amazon, Microsoft, Google’s parent company Alphabet, Facebook’s parent company Meta, and TikTok’s parent company ByteDance.
These tech companies have now been classified as online “gatekeepers” under the EU’s Digital Markets Act (DMA), subjecting them to the highest level of scrutiny.
“The most influential online companies will now have to adhere to our EU regulations,” announced European Commissioner Thierry Breton in a tweet. He further added, “DMA will empower consumers with more choices and reduce barriers for smaller competitors, opening up a more accessible Internet for all.”
The EU’s executive commission clarified that companies can be designated as gatekeepers if they offer essential platform services that connect businesses and consumers. Examples include Google’s Chrome browser and Apple’s App Store.
These tech giants have a timeframe of six months to begin implementing the requirements outlined in the Digital Markets Act. Failure to comply with the new regulations could result in fines up to 10% of a company’s global annual revenue, with repeat offenders facing penalties of up to 20% or even the potential breakup of the company.
Meta, the parent company of Facebook, stated that it is analyzing the commission’s announcement and will provide more information about its plan to comply with the DMA in due course. Meanwhile, Amazon expressed its intention to collaborate with the EU on the implementation process, Microsoft accepted its classification under the regulation, and TikTok expressed its disagreement with the new rules.
The Hill has reached out to the other tech giants affected by these new regulations for their comments.
Amazon informed the Associated Press that it would work closely with the EU on developing implementation plans, whereas Microsoft acknowledged its designation under the regulation. TikTok, on the other hand, expressed its differing stance on the new rules.
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