June 13, 2024

The EU’s Crusade Against Big Tech: The Battle for a Fair Digital Market

2 min read
New investigation proves EU’s commitment to regulating digital giants

The European Union (EU) wasted no time in enforcing its new digital market regulation, the Digital Markets Act (DMA), which came into effect last year. The world’s largest digital companies, including Google’s parent company Alphabet, Meta (formerly Facebook), and Apple, were given until March 7 to make changes to comply with the regulation. Despite claims from these companies that they had made changes, the Commission remained unconvinced.

On Monday, March 25, the Commission announced that it suspects Google, Meta, and Apple are still not acting in accordance with the regulation. An investigation has been launched, and potential fines could reach up to 10 percent of the companies’ global turnover. The goal is to bring these digital giants under control and ensure compliance with the new regulations.

The traditional fines imposed on these companies in the past have not been effective in curbing their behavior. For example, the EU fined Apple 1.8 billion euros for abusing its dominant market position in the distribution of music streaming apps, but this amount was negligible compared to the company’s profits. The new Digital Markets Act gives the EU authorities the power to issue fines of up to 10 percent of a company’s global turnover for violations, which could have a more significant impact on these tech giants.

The regulation also includes structural remedies, such as forcing companies to sell certain parts of their business operations if they continue to violate the rules. The authorities can now intervene proactively to prevent anti-competitive practices and ensure a fair digital market. This approach is a departure from traditional competition laws that tend to intervene after the fact.

The new legislation aims to prevent dominant companies from stifling competition and innovation, as seen in the case of tech giants favoring their own services over competitors. For consumers, this can result in limited choices and potentially higher prices. By taking a proactive approach and implementing strict regulations, the EU hopes to level the playing field in the digital market and prevent abuses of power by these companies.

The ongoing legal battles in the US against dominant companies such as Google and Facebook highlight some of

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