The European Union is targeting Apple, Amazon, Microsoft, Google parent Alphabet, Facebook owner Meta and TikTok parent ByteDance under new digital rules aimed at reining in the market power of online companies.
The six companies were classified on Wednesday as online âgatekeepersâ that must face the highest level of scrutiny under the 27-nation blocâs Digital Markets Act.
The act amounts to a list of doâs and donâts that seeks to prevent tech giants from cornering digital markets, with the threat of whopping fines or even forcing Big Tech companies to sell of parts of their business to operate in Europe.
Itâs part of a sweeping update to the EUâs digital rulebook thatâs starting to take force this year, and comes weeks after a companion package of rules aimed at keeping internet users safe, the Digital Services Act, started kicking in.
âThe most impactful online companies will now have to play by our EU rules,â European Commissioner Thierry Breton, whoâs in charge of the blocâs digital policy, said on X, previously known as Twitter.
âDMA means more choice for consumers. Fewer obstacles for smaller competitors. Opening the gates to the Internet.â
The EUâs executive commission said digital platforms can be listed as gatekeepers if they act as key gateways between businesses and consumers by providing âcore platform services.â
Those services include Googleâs Chrome browser, Microsoftâs Windows operating systems, chat apps like Metaâs WhatsApp, social networks like TikTok, and others playing a middleman role like Amazonâs Marketplace and Appleâs App Store.
The companies have six months to start complying with the Digital Markets Actâs requirements, which are spurring changes in how Big Tech companies operate.
Google said the new law will require it and other companies âto make various changes to the way their products and services work.â
One of the main goals is to break up the âclosed environment where you are in a way locked in and you cannot go elsewhere, â said Alexandre de Streel, a professor of European law at the University of Namur and an academic director at CERRE, a think tank in Brussels.
âConsumers will be better off because you will pay less and will be able to move more easily from one one platform to another,â de Streel said. âSo thatâs the endgame.â
For example, under the DMA tech companies canât stop consumers from connecting with businesses outside their platforms.
That could put pressure on Apple to open its App Store further. Video game maker Epic Games and music streaming service Spotify have both complained that Apple wouldnât let them bypass its Apple Pay payments system to avoid paying its 30 per cent commission for subscriptions. Apple has since eased some of its longstanding restrictions.
Messaging services will be required to work with each other. That means Telegram or Signal users could exchange texts or video files with WhatsApp users.
Platforms are banned from ranking their own products or services higher than their rivalsâ in search results. So, Amazon isnât allowed to make its own-brand products easier to find than those from third-party merchants.
The ecommerce giant already started giving European buyers more visible choices when it settled an EU antitrust probe last year, by offering them a second âbuy boxâ with a different price or delivery offer for the same product.
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