The Digital Markets Act (the \u201cDMA\u201d) imposes a strict set of restrictions on big tech companies that qualify as \u201cgatekeepers\u201d under goals of ensuring fairness and regulation in the digital marketplace.[2]<\/a> Gatekeepers include companies that measure at least \u20ac7.5 billion in annual revenue and \u20ac75 billion in market capitalization and have at least forty-five million monthly users and 10,000 yearly business users.[3]<\/sup><\/a> Companies like Amazon, Google, Meta, Microsoft, and Apple will be affected.[4]<\/a><\/p>\n The DMA aims to \u201cprotect consumers and give rivals a better chance to survive against the world\u2019s powerful tech juggernauts\u201d with rules that will force gatekeeper companies to, among other things, offer its users alternative payment systems, search engines, and messaging platforms.[5]<\/a> These regulations seek to increase the number of service options available for consumers to choose from while creating real opportunities for new innovators and start-ups to thoughtfully compete in the tech market.[6]<\/a><\/p>\n As far as the gatekeepers go, the European Commission notes the tech giants \u201cwill keep all opportunities to innovate and offer new services \u2026 [but] will simply not be allowed to use unfair practices towards the business users and customers that depend on them to gain an undue advantage.\u201d[7]<\/a> To hold the gatekeepers accountable, non-compliance with the DMA can result in fines reaching up to ten percent of the company\u2019s worldwide revenue, and up to twenty percent for repeat offenders.[8]<\/a><\/p>\n What will these rules actually look like in practice? The DMA will grant users \u201cthe option to uninstall pre-installed software applications on a core platform service at any stage.\u201d[9]<\/a> This means that, for example, iPhone users will be able to delete Safari and Android users can remove Chrome from their devices without affecting the operating systems\u2019 functionality. Apple and Google will also have to allow alternatives to their application stores and payment methods, and online advertising sellers \u201cwill see new limits for offering targeted ads without consent.\u201d[10]<\/a><\/p>\n Perhaps most controversially, the DMA will also \u201cforce messenger services to ensure interoperability with other messaging services,\u201d which will allow for seamless group chatting between users with different operating systems.[11]<\/a> This means that messaging services like WhatsApp \u201ccould be required to offer a way for users of rival services like Signal or Telegram to send and receive messages to somebody using WhatsApp.\u201d[12]<\/a> Critics fear this interoperability requirement could lead to a huge divide in the market and even a potential collapse of service providers that may provide users with perks like better privacy practices, but cost more than other options.[13]<\/a><\/p>\n Messaging interoperability is not the only piece of the DMA that has received criticism, and many questions still remain as to the future of the law. Deemed \u201cone of the fiercest lobbying efforts ever seen,\u201d big tech companies have fought against the regulations at every step of the legislative process and are now \u201cexpected to look for ways to diminish [the DMA\u2019s] impact through the courts.\u201d[14]<\/a><\/p>\n The DMA will now seek final approval by a full session of the European Parliament and by ministers from the E.U.\u2019s twenty-seven member states.[15]<\/a> Once passed, the DMA will be \u201cdirectly applicable across\u201d the entire European Union.[16]<\/a> Meanwhile, European regulators now face the task of enforcing the new law with the rest of the world watching the effects of his monumental step toward taming big tech.<\/p>\n <\/p>\n [1]<\/a> Adam Satariano, E.U. Takes Aim at Big Tech\u2019s Power with Landmark Digital Act<\/em>, N.Y. Times (Mar. 4, 2022), https:\/\/www.nytimes.com\/2022\/03\/24\/technology\/eu-regulation-apple-meta-google.html.<\/p>\n [2]<\/a> The Digital Markets Act: Ensuring Fair and Open Digital Markets<\/em>, Eur. Comm\u2019n, https:\/\/ec.europa.eu\/info\/strategy\/priorities-2019-2024\/europe-fit-digital-age\/digital-markets-act-ensuring-fair-and-open-digital-markets_en [hereinafter The Digital Markets Act<\/em>].<\/p>\n [3]<\/a> European Union Reached a Political Agreement on the Digital Markets Act<\/em>, Nat\u2019l L. Rev. (Mar. 29, 2022), https:\/\/www.natlawreview.com\/article\/european-union-reached-political-agreement-digital-markets-act.<\/p>\n [4]<\/a> Satariano, supra<\/em> note 1.<\/p>\n [5]<\/a> EU Negotiators Agree Landmark Law To Curb US Big Tech Giants<\/em>, Al Jazeera (Mar. 25, 2022), https:\/\/www.aljazeera.com\/news\/2022\/3\/25\/eu-negotiators-agree-landmark-law-to-curb-us-big-tech-giants [hereinafter EU Negotiators<\/em>].<\/p>\n [6]<\/a> The Digital Markets Act<\/em>, supra <\/em>note 2.<\/p>\n [7]<\/a> Id.<\/em><\/p>\n [8]<\/a> EU Negotiators<\/em>, supra<\/em> note 5.<\/p>\n [9]<\/a> The Digital Markets Act: What You Need to Know About the EU\u2019s New DMA<\/em>, The Stack (Mar. 28, 2022), https:\/\/thestack.technology\/the-digital-markets-act-what-you-need-to-know\/ [hereinafter What You Need to Know<\/em>].<\/p>\n [10]<\/a> Satariano, supra<\/em> note 1.<\/p>\n [11]<\/a> What You Need to Know<\/em>, supra<\/em> note 9.<\/p>\n [12]<\/a> Satariano, supra<\/em> note 1.<\/p>\n [13]<\/a> What You Need to Know<\/em>, supra<\/em> note 9.<\/p>\n [14]<\/a> Satariano, supra<\/em> note 1.<\/p>\n
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