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News / Tech / Amidst Big Tech's rush to comply with EU regulations, expectations rise for potential investigations

Amidst Big Tech's rush to comply with EU regulations, expectations rise for potential investigations

Published: 07.03.2024 by Noirbull
Over the past six months, major tech companies including Google, Apple, Amazon, Microsoft, Meta, and TikTok owner ByteDance have been rushing to comply with significant EU tech regulations set to take effect on Thursday.

These regulations, known as the Digital Markets Act (DMA), are among the most extensive efforts to regulate "Big Tech" and are expected to reshape the global technology industry after years of unchecked expansion.

The DMA has prompted these companies to overhaul their online platforms and internal systems. Despite their efforts, criticism from competitors and users, as well as cautious statements from regulators, suggest that some of these companies may face scrutiny over potential non-compliance in the near future.

Failure to comply with the DMA by the EU's deadline could lead to investigations and potential fines of up to 10% of the company's global turnover for any of the six tech giants.

Apple is particularly impacted by the DMA, as it requires the company to open its closed ecosystem, allowing software developers to distribute their apps to EU users outside of the App Store. However, Apple's introduction of new fees, such as a "core technology fee," has raised concerns, with EU antitrust chief Margrethe Vestager expressing scrutiny over the matter. This comes after Apple was fined 1.84 billion euros for obstructing Spotify from displaying alternative payment options outside its App Store. Apple has announced plans to appeal the decision.

Rivals like Proton, a Swiss email service, have criticized Apple's compliance efforts, suggesting they are insufficient. The European Commission declined to comment on these criticisms.
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