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Big Tech now regulated like banks, says EU antitrust chief
by AFP Staff Writers
Brussels (AFP) March 25, 2022

Big Tech companies will be regulated like banks, a top EU official said on Friday, as a new landmark digital law was hailed as Europe's long overdue counterweight to Google, Meta and Amazon.

"For companies that play a role as gatekeepers, the Digital Markets Act (DMA) will (now) set the rules of the game," the EU's competition chief Margrethe Vestager told reporters hours after the law was approved.

This was "done a long time ago in sectors such as banking, telecoms, energy, transport" and at "long last, we establish the same reality here," she added.

France's representative to the EU Commission, Thierry Breton, said the law marked "a very important moment for Europe" in which public authorities have "reclaimed power".

"Everyone is welcome, but we have rules and they have to be respected," added Breton, who is commissioner for industrial policy.

Praise and some criticism poured in after negotiators from the European Parliament and EU member states agreed late Thursday on the law that will curb the market dominance of tech giants such as Google, Facebook owner Meta, Amazon and Apple.

The European Consumer Organisation hailed a "big moment for consumers and businesses who have suffered from Big Tech's harmful practices," deputy head Ursula Pachl said.

The DMA will "put an end to many of the worst practices that Big Tech has engaged in over the years".

- 'Great significance' -

The lobby for Big Tech said the DMA was of "great significance", while warning against putting "one-size-fits-all" solutions on companies that are vastly different, according to statement from the Computer & Communications Industry Association.

As the final details are worked out, "we hope sufficient resources are allocated and that impacted companies will be given a fair chance to comply," CCIA added.

Apple said Thursday night that it was "concerned" about certain "privacy and security" risks for users of its products, while Google warned of "potential risks" to innovation and the variety of choices available to Europeans.

The DMA features a long list of dos and don'ts for the Big Tech companies that would face massive fines if they failed to comply.

Vestager said that the law should be published in the EU's Official Journal around October, after being formally approved by the bloc's member states and MEPs.

The Commission will then have six months to designate the companies concerned, thought to be only the US tech giants and perhaps a handful of other players such as Booking.com or TikTok.

The first possible fines for non-compliance are not expected before the first quarter of 2024.

New EU law leaves Big Tech facing major rethink
Paris (AFP) March 25, 2022 - From Amazon shoppers to iPhone owners, the world faces a rethink in the way it interacts with Big Tech, thanks to a new law agreed by the European Union on Thursday.

The Digital Markets Act tries to ensure smaller players will be able to enter the market without Silicon Valley behemoths stomping on them before they get off the ground.

It fights their ability to "lock consumers into their ecosystem" by sheer force of market share, says Pierre-Jean Benghozi of French research institute CNRS.

That ethos is at the heart of one of the most eye-catching proposals -- to ensure "interoperability" between messaging apps.

Essentially, this means WhatsApp users, for example, could ditch the app, but continue conversations with friends later by using iMessenger, Signal or another app.

WhatsApp, in the stable of Facebook owner Meta, has maintained a stranglehold on the market at least partially because so many people already use it.

If it no longer has that appeal, it is not hard to see users moving away to other apps.

- 'Landmark law' -

Sonia Cisse, a specialist lawyer from the Linklaters firm, highlights provisions in the act that would stop large platforms from promoting their own services ahead of those of their rivals.

"This is an issue for Google," she says. "If you type 'travel' into your search bar, for example, you will no longer come across the trips offered by Google."

Amazon has also long been accused of promoting its own products.

Those practices will be illegal if the DMA passes in its current form.

Apple, too, faces some of its domination being squashed.

It will no longer be able to force customers to buy and sell apps using its in-house payment system, and users will be able to delete the Safari browser that comes as standard on its iPhones.

Maya Noel, of the Digital France group that lobbies for startups, says these kinds of rules could change the landscape entirely for smaller developers.

App stores "will no longer be able to force them to go through their identification system, their payment system, or prevent them from advertising directly", she explains.

Ursula Pachl of the European Consumer Organisation called it a "landmark law for the EU's digital transformation".

"But Member States must now also provide the Commission with the necessary enforcement resources to step in the moment there is foul play," she said.

- 'One size fits all' -

In the past, big EU legislation has suffered from patchy enforcement.

The huge data privacy regulation (GDPR) came into force in 2018 and empowered regulators across the bloc to issue huge fines.

But activists have long lamented the slow pace of action, with cases taking years to grind through the system.

Maya Noel hopes the DMA will be different.

She says an app developer, for example, should be able to get a very quick response to a report of non-compliance.

The complainant will no longer need to prove that the big firm is abusing its dominant position.

Instead, it will be enough to show that one of the mandatory rules of the DMA has been violated.

The industry, of course, is far from happy.

"The DMA borrows remedies from ongoing competition enforcement cases, but applies them inflexibly and on a one-size-fits-all basis to all platform services of companies designated as 'gatekeepers'," said the CCIA, an industry lobby group.

Lawyer Sonia Cisse also wonders whether the law has gone too far.

"It's a bit like the GDPR," she says. "It's designed for the very big players, but other smaller ones get caught in the net."


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