What you should know
- The Digital Markets Act (DMA), passed by the EU in 2022, is a significant piece of legislation aiming to foster a fairer and more competitive digital marketplace. It targets major online platforms with gatekeeper status, such as Apple, Amazon, Meta, Microsoft, Google, and ByteDance.
- These gatekeepers face a set of obligations and prohibitions designed to curb potential abuses of market power and ensure a competitive environment. However, a coalition of big technology and media companies has alleged that these gatekeepers are not adequately aligning their operations with the upcoming regulations.
- The coalition, which includes 24 companies such as Schibsted, Ecosia, Qwant, Element, and ProtonVPN, has penned an open letter stating that the gatekeepers have failed to engage in a dialogue with third parties or have presented solutions falling short of compliance with the DMA.
- The signatories are calling on the gatekeepers to initiate constructive dialogues with business users and other stakeholders, and they urge the European Commission and the European Parliament to ensure that the gatekeepers comply with both the literal requirements and the underlying principles of the DMA.
Full Story
The European Union has been giving big tech companies a bit of a migraine lately. Wondering why? Let’s dive into it.
The Digital Markets Act (DMA) is the culprit. Passed by the EU in 2022, this hefty piece of legislation has a mission. It’s all about fostering a fairer and more competitive digital marketplace.
So, what does the DMA do? It zeroes in on major online platforms with gatekeeper status. This means they have a big influence on the internal market and a dominant position as intermediaries.
These gatekeepers are now facing a set of obligations and prohibitions. These rules are designed to curb any potential abuses of market power and ensure a competitive environment.
According to a CNBC report (via Apple Insider), a bunch of big tech and media companies are not happy. They’ve penned an open letter, claiming that these gatekeepers aren’t doing enough to align their operations with the upcoming digital competition regulations imposed by the EU.
So, who are these gatekeepers? Apple, Amazon, Meta, Microsoft, Google, and ByteDance, the owner of TikTok. Yep, you probably know all of them. The companies that signed the open letter argue that these big tech players haven’t been playing nice with them and others in the industry.
Who signed the letter? A group of 24 companies, including Schibsted, Ecosia, Qwant, Element, and ProtonVPN. They claim that the gatekeepers “have either failed to engage in a dialogue with third parties or have presented solutions falling short of compliance with the DMA.”
They also noted that businesses and consumers are being “kept in the dark” about what’s coming post March 7, 2024. By then, all six gatekeepers are required to align their operations with the DMA.
The letter, signed by representatives of various businesses impacted by the DMA, has a clear message. The gatekeepers need to start constructive dialogues with business users and other stakeholders, including business and consumer associations. The goal? To speed up progress on proposed compliance solutions.
The signatories are also calling on the European Commission and the European Parliament. They want them to “use all within their power to ensure that the gatekeepers” comply with both the literal requirements and the underlying principles of the DMA.
The big tech gatekeepers have a to-do list. They need to make their messaging apps compatible with rival ones or let users pick which apps come pre-installed on their gadgets. For instance, Apple needs to give a thumbs up to alternative app stores. This might even lead to Apple splitting its App Store into two.
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