European Lawmakers Agree On New Law To Curb The Dominance Of Big Tech Companies
To curb big tech companies’ dominance, the lawmakers of Europe agreed on developing new rules. Under the new rule which is called the Digital Markets Act (DMA), the tech giants such as Google and Apple will be forced to open up their services to other businesses in the market. According to this rule, other businesses now can access the platforms of tech giants.
For many years, the major technology firms are criticized for squeezing out the competition by utilizing their market dominance. EU antitrust chief Margrethe Vestager said, “What we want is simple: fair markets…in digital,” Vestager also added, “Large gatekeeper platforms have prevented businesses and consumers from the benefit of competitive digital markets.”
German MEP Andreas Schwab led the negotiations for the European Parliament. It is the biggest regulatory move against the anti-competitive behavior of US technology businesses. Andreas Schwab said, “The agreement ushers in a new era of tech regulation worldwide.”
According to the proposed Digital Markets Act, Apple would have to allow third-party payment options in its App Store. Earlier the users were obligated to use Apple’s own payment system. Earlier Apple performed a high-profile court battle with Epic Games. Similarly, Google also will be asked to offer alternatives search engines, Google Maps app, or Chrome browser to its Android operating system users.
The main purpose of this act is to give users more choice. But Apple said, ” (We are) concerned that some provisions of the DMA will create unnecessary privacy and security vulnerabilities for our users”. At the same time, Google said, “While we support many of the DMA’s ambitions around consumer choice and interoperability, we’re worried that some of these rules could reduce innovation and the choice available to Europeans.”