EU Authorities to Intensify Regulation on Tech Giants: Google, Apple, Amazon, and Meta to Face Scrutiny
Technology giants such as Google, Apple, Amazon, and Meta could soon face the European Union’s most significant crackdown ever on anticompetitive practices in the digital economy. This move is expected to trigger a series of legal battles between regulators and Silicon Valley. Antitrust regulators are preparing to announce a list of internet services that will be targeted by the Digital Markets Act (DMA), with Alphabet’s Google Search, Apple’s App Store, Amazon’s shopping site, and Meta’s Facebook likely to be included.
The DMA, set to take effect in early 2023, aims to prevent dominant firms from undermining emerging markets before regulatory action can be taken. It will impose strict rules on these tech giants, who, despite facing numerous investigations and hefty fines, have previously evaded regulation. The new legislation will prohibit certain platforms from favoring their own services over competitors, prevent the consolidation of personal data from different services, and bar the use of data collected from third-party merchants to compete against them. Additionally, the rules will require platforms to allow users to download apps from rival platforms.
While the DMA sets the stage for a showdown between these companies and the European Union, legal experts believe that litigation is on the horizon, with the same courts that have handled previous antitrust cases likely to be involved. Alexandre de Streel, academic director of the digital research program at the Centre on Regulation in Europe, expects legal battles to ensue, stating that defining which services will fall under the regulations has not been as straightforward as anticipated.
Companies like Apple have already expressed concerns, highlighting potential compliance challenges and the need to protect user experience. During a meeting with EU competition chief Margrethe Vestager’s cabinet, Apple emphasized the scope of its services and the impact that the rules may have. Email correspondences from the company’s lawyers further demonstrated their intention to engage in substantive discussions regarding compliance with the DMA.
Amazon CEO Andy Jassy also voiced concerns during a meeting with Vestager, expressing worries about overlapping and conflicting regulations emanating from national competition authorities. Notably, Amazon has already challenged its designation under Germany’s own digital competition rules. Meta chief Mark Zuckerberg engaged in talks with Vestager to discuss compliance with the legislation.
Microsoft has argued that its search engine, Bing, is not a significant competitor to Google and should, therefore, be exempt from the regulations. Google itself may face questions regarding how its search services will align with the new rules, based on previous comments made by the company’s top European lawyer to regulators.
When questioned about their compliance plans, none of the major tech firms provided immediate comments. As the European Commission reveals the designated platforms, companies will have six months to adapt their services accordingly or challenge the designation in court.
However, legal experts believe that challenging the regulations in court may yield limited success. Christophe Carugati, affiliate fellow at the Bruegel think tank on digital and competition issues, suggests that if these platforms meet the necessary thresholds to fall under the DMA’s scope, they will not have a legitimate argument against compliance.
In conclusion, European regulators are poised to impose stricter rules on big tech companies, including Google, Apple, Amazon, and Meta. The upcoming Digital Markets Act will establish a framework to prevent these dominant firms from engaging in anticompetitive practices. While legal battles are anticipated, it is unlikely that they will succeed in challenging the regulations. As the digital economy continues to evolve, the European Union aims to create a fair and competitive environment for all players involved.
