Microsoft, Google, and Meta are among the major technology companies that will face changes as a result of new EU IT regulations: All Details

As part of its latest assault on Big Tech, the European Union has chosen 22 so-called "gatekeeper" services run by six of the world's largest tech giants to face new laws. The broad Digital Markets Act (DMA) will apply to Alphabet, Amazon, Apple, Meta, Microsoft, and TikTok owner ByteDance services.

Many regard the DMA as a companion piece of legislation to the Digital Services Act (DSA), which imposes increased obligations on digital corporations for the information posted on their platforms. The DMA aims to level the playing field between Big digital businesses and smaller rivals.

The internet titans now have six months to comply with the DMA's regulations, which aim to improve service access and compatibility throughout Europe and offer an unprecedented threat to these businesses' economic models.

Companies with more than 45 million monthly active users and a market capitalization of 75 billion euros ($82 billion) are deemed gatekeepers under the DMA.

Businesses branded as such must make their messaging applications interoperable with competitors and allow customers to choose which apps to pre-install on their devices.

Alphabet's Google has the most services, including its Android operating system, Maps, and Search, which would be subject to stricter regulations. Gatekeepers included Meta's Facebook, Instagram, Marketplace, and WhatsApp.

Companies who fail to meet their responsibilities may face fines of up to 10% of their annual global revenue for DMA infractions.

Gatekeepers might request an interim measure to halt the regulations' application, but they would need to file a legal challenge with the EU Court of Justice in Luxembourg to do so, according to a senior Commission official. "We haven't seen anything like that so far."

Following the passage of additional legislation, the Digital Services Act, Zalando filed a lawsuit against the Commission in June.

"It's D-Day for #DMA!," EU industry leader Thierry Breton said on X, formerly known as Twitter. "The most influential online companies will now be required to follow our EU rules."

Mixed Reactions

A Microsoft official stated that the company accepts its gatekeeper classification, while Meta, Google, and Amazon representatives stated that they were considering the designations.

Apple and TikTok were less friendly.

TikTok stated that it "fundamentally disagreed with this decision" and was "disappointed that no market investigation was conducted prior to this decision," adding that it was weighing its options.

According to an Apple spokeswoman, the business is "very concerned about the privacy and data security risks that the DMA poses for our users."

The iPhone manufacturer has previously expressed fear that the DMA might lead to greater "side-loading" of apps that do not come from Apple's App Store.

"The Commission should balance the need to protect user security and privacy with the very real risk that gatekeeper app stores will use security and privacy as excuses to dilute compliance with their DMA obligations," said Clifford Chance partner Stavroula Vryna.

The Commission exempted Alphabet's Gmail, Microsoft's Outlook, and Samsung's browser after the businesses offered adequately justified reasons demonstrating that these services do not qualify as gatekeepers.

The Commission has also launched four market investigations to investigate Microsoft's and Apple's claims that many of their main platforms, including as Bing, Edge Microsoft Advertising, and Apple's iMessage services, do not qualify as gateways.

"iMessage is designed and marketed for personal consumer communications, and we look forward to explaining to the commission why iMessage falls outside the scope of the DMA," stated an Apple representative.