Two major new laws regulating online platforms recently came into force in the European Union: the competition-focused Digital Markets Act (DMA) and the content-focused Digital Services Act (DSA). The European Commission has wasted no time in pursuing those it suspects of violating the new rulebook.
The latest action came at the end of March, when the commission opened investigations into Apple, Google parent company Alphabet and Meta because it suspects them of not complying with the DMA's competition rules.
The announcement came just two weeks after the DMA's entry into force on March 7, showing that "DMA compliance is something that we take very seriously," EU competition chief Margrethe Vestager said.
The tech industry took a different view. "The timing of these announcements, while the DMA compliance workshops are still ongoing, makes it look like the commission could be jumping the gun," said the head of the Computer and Communications Industry Association (CCIA) Europe, Daniel Friedlaender. The lobby group’s members include Apple, Google and Meta.
The DMA is designed to regulate the competitive practices of platforms the Commission deems to be "gatekeepers" in the digital economy. A gatekeeper is a company that holds a powerful, entrenched position in the EU’s digital economy, acting as an intermediary between many users and businesses.
The DMA's sister legislation is the DSA, a content moderation law that forces platforms to do more to confront illegal and harmful content.
The DSA's rules for "very large online platforms" (VLOPs) and "very large online search engines" (VLOSEs) - those with more than 45 million monthly users in the EU - took effect in August 2023. The rules for smaller platforms entered into force in February 2024.
Under the DMA, the commission has designated six gatekeepers: Alphabet, Amazon, Apple, Tiktok-owner ByteDance, Meta and Microsoft.
The EU executive has also designated 22 distinct digital services as very large online platforms or search engines under the DSA.
These include all of the DMA gatekeepers: five Google services (Google Search, Google Play, Google Maps, Google Shopping and YouTube), Meta's Facebook and Instagram, Microsoft Bing and Microsoft-owned LinkedIn, TikTok, Amazon's online retail store and the Apple App Store.
X, formerly known as Twitter, is also designated as a very large online platform under the DSA, and is already under investigation for suspected violations of its rules. X has not yet been designated as a DMA gatekeeper, though the company has notified the commission that it meets the criteria.
BIG TECH SCRUTINIZED OVER COMPETITION CONCERNS
In the new DMA investigations, the commission suspects that Apple and Google have not taken effective measures allowing mobile app developers to inform users of offers outside of the two gatekeepers' app stores, which take a cut of all transactions.
The commission also suspects that Google favours its own services in search results - for example giving Google Shopping prominence over rival services.
Furthermore, the commission is investigating Meta over its recently-introduced policy of asking users to choose between paying for access and consenting to their personal data being shared between the company’s services – such as Facebook and Instagram – for use in targeted advertising.
The commission is also seeking to "clarify" whether Amazon favours its own-brand products, and whether Apple’s new fee structure for its App Store complies with the DMA.
The commission intends to conclude its investigations within 12 months. Companies found to have breached the DMA could face fines as high as 10% of their global annual revenue, or 20% if they repeat the violations.
EU COMMISSION TARGETS DEEPFAKES AHEAD OF ELECTIONS
Last month the commission used its DSA powers to ask TikTok, Facebook, Instagram, X, Google search, YouTube, Snapchat and Bing to explain what measures they are taking to manage the risks arising from content generated through artificial intelligence (AI), such as deepfakes.
The call for companies to take measures against AI-related risks is part of a raft of guidelines published under the DSA's risk mitigation rules for large platforms. Companies found to have breached the risk mitigation rules risk fines of up to 6% of their global annual revenue.
Brussels especially fears the impact of Russian manipulation and disinformation on elections to the European Parliament taking place on June 6–9.
Companies covered by the commission's request for information had until April 5 to respond to the questions about protecting elections, and until April 26 for the rest.
Like all EU regulations, the DSA had to be transposed into national law. The process has sparked controversy in some quarters, including accusations that the legislation will lead to excessive censorship and the suppression of content that is not technically illegal.
The content of this article is based on reporting by AFP, Agerpres, ANSA, dpa, EFE as part of the European Newsroom (enr) project.
