EU Defines Alphabet, Amazon, Meta as Powerful Gatekeepers Amidst New Competition Law Reforms

The European Commission has announced that it classifies six major tech companies, including Amazon, Alphabet, Apple, Microsoft, Meta, and ByteDance, as “gatekeepers” under the new Digital Markets Act (DMA). These companies will now have to comply with strict rules that could have a significant impact on their business models.

According to the European Commission, the designated gatekeepers have six months to ensure their core platform services are in line with the DMA’s obligations.

Being designated as “gatekeepers” means that the EU believes these companies are limiting access to essential platform services like online search, advertising, messaging, and communication.

Furthermore, the EU has initiated market investigations into Microsoft and Apple, aiming to assess whether some of their services should be considered gatekeepers.

During these investigations, the European Commission will carefully analyze the submissions made by Microsoft and Apple. The EU claims that Microsoft’s Bing, Edge, and Microsoft Advertising platforms, as well as Apple’s iMessage service, meet the criteria to be classified as gatekeepers. However, Microsoft and Apple dispute this designation.

The EU will also examine whether Apple’s iPadOS, the operating system for its iPad tablets, should be classified as a gatekeeper, even though it currently does not meet the criteria set by the European Commission.

The Digital Markets Act represents a groundbreaking EU law designed to address anticompetitive practices by large tech companies. Smaller internet firms and other businesses have raised concerns about the impact of these companies’ business practices.

For example, Google and Apple, the leading mobile operating system providers worldwide, impose a 30% fee for in-app purchases. Companies like Spotify and Epic Games argue that this fee is excessive.

Apple has expressed concerns about the privacy and data security risks posed by the Digital Markets Act. The company believes that the DMA could compromise the security of its iMessage platform. The EU expects Apple to facilitate iMessage’s compatibility with competing messaging services, such as WhatsApp.

In addition to the aforementioned companies, the EU has also designated Chinese firm ByteDance as a gatekeeper. This decision comes amid global concerns about the growing popularity of ByteDance’s social media platform, TikTok, and its potential to spread disinformation to young users.

Furthermore, EU lawmakers have raised apprehensions regarding Chinese influence over TikTok, including the possibility of Beijing exploiting the app for surveillance purposes.