Digital Markets Act

EU lawmakers have passed the Digital Markets Act which is expected to rein in Big Tech firms.

• When it comes to the digital world, there are only a handful of companies such as Google, Apple, Amazon, Facebook, Alibaba, Tencent, Microsoft, that have massive control.
• They have made record profits, some even have market caps of over a trillion dollars. While it’s good for their shareholders, it severely limits competition and innovation.
• Offlate, we have seen how large technology platforms armtwist apps and services to follow rules and indulge in anti-competitive practices.
• Apple has been accused of favouring its own services over rivals, charging a high 30% tax for in-app purchases and making it difficult for apps to offer alternative payment methods.
• Amazon has used user data to push out independent sellers and promote its own in-house products. This makes it difficult to compete with big technology companies.
• EU lawmakers want to contain the onslaught of technology companies to ensure a level playing field for everyone, with the Digital Markets Act that was passed in the EU Parliament.
• The DMA rules apply to “gatekeeper platform” companies with a market cap of over €80 billion, meaning most US and Chinese large technology firms operating in the EU.
• For the end consumer it means more choice, interoperability of apps and services, ability to delete unwanted apps, not being locked into technology ecosystems.
• Big Tech lobbyists are expected to try to water it down before it gets implemented across all the EU states.
• Negotiations with the EU governments on the implementation will begin in the first half of 2022. Till that happens, get acquainted with the finer aspects of the DMA with these stories.