European Lawmakers agreed on a new Law called the Digital Market Act .It is in the hope to curb the dominance of giant tech companies. Under the new law, big tech such as Apple and Google will be forced to open their platforms. They will allow services to other businesses. The law will possibly reshape app stores, e-commerce, online advertising, messaging services and other routine digital tools.
Digital Market Act and EU objective
Digital Market Act will help to protect consumers. Also, give other businesses a chance of survival against the world’s powerful tech. The European Parliament and EU member states have agreed on this new law. The meeting was held in Brussels on Thursday where politicians gathered a long list of dos and don’ts.
German MEP Andreas Schwab, leading negotiator for the European Parliament said, ‘’ the agreement ushers in a new era of tech regulation worldwide.’’ Furthermore, he added, ‘’ The Digital Markets Act puts an end to the ever-increasing dominance of Big Tech Companies.’’
Digital Markets Act Target techs
The new law targets include Facebook Messenger, WhatsApp, iMessage, Google Play, Apple Store and many other services belonging to giant tech firms.
EU antitrust chief Margrethe Vestager, proposed the legislature a year ago said, ‘’ what we want is simple: fair market…. in digital. As large gatekeeper platforms have prevented businesses and consumers from the benefit of the competitive digital market.’’
Further, France who holds the presidency in the EU said that the law would deliver, ‘’ concrete impacts on the lives of European citizens. ‘’ France’s digital affairs minister, Cedric O said, ‘’ We are talking about the goods you buy online. Furthermore, the smartphone you use every day, and the services you use every day.’’
Meanwhile, violation of the new law rules could lead to a fine of almost 10 per cent of a company’s annual global sales. If the offender repeats the same act, it can be up to 20 per cent.
Lawyer Katrin Schallenberg, a partner at Clifford Chance, ‘’The DMA “will have a profound impact on the way some gatekeepers’ operate. Companies affected … are already working on ways to comply with or even challenge the regulation,”