How does the EU Digital Markets Act challenge Big Tech?

The Digital Markets Act (DMA) is one of the world's toughest pieces of legislation aimed at the markets of the world's leading technology companies, and also aims to make it easier for people to switch between competing services, such as between social networks, internet browsers and app stores.

Things to note about Europe's new digital market law image 1 — Photo: Reuters

On Wednesday (September 6), the European Union Commission ordered 22 services from major tech companies to interact with rival services and let users decide which apps can be pre-installed on their devices.

These companies include Alphabet, Amazon, Apple, Meta, Microsoft, and ByteDance. The companies have been given six months to comply. Here’s how the new rules could impact each service:

Advertising must be transparent

Under the DMA, services from designated Big Techs will now have to get explicit consent before tracking users for advertising purposes.

Business customers using online advertising services provided by Amazon, Google and Meta will also have the right to request data collected in connection with their campaigns, a valuable resource often kept hidden by the platforms.

App Store Exclusivity

Apple and Google will be forced to provide space for third-party app stores on iOS and Android devices.

Currently, Android users can install apps from alternative sources, but the process often requires them to disable certain security settings.

Industry experts have predicted that “a range of alternative app stores will emerge once the new rules come into effect”. That will also result in “an increase in exclusive deals, where certain games and apps may only be available for download through certain stores”.

No more default apps

Consumers will no longer be forced to use default apps on their devices, such as the Safari web browser on iPhones or Google Maps on Android phones.

Big tech companies should make it easy for users to switch from their default app stores, web browsers, navigation tools, and more on their devices to alternatives.

For example, Big Tech platforms need to provide users with a “choice screen” with multiple options when initially setting up their device, like using Safari or Chrome.

Not ranking on e-commerce, search engines and social media

Commercial services like Amazon, Facebook's content feed and Google's search engine would be banned from giving preferential rankings to their services and products.

Amazon is facing global scrutiny following allegations that it has been prioritizing its own products over third-party sellers using its platform.

Allow messaging across apps

Under the DMA's new interoperability rules, messaging apps will no longer be separated from other apps. So far, the EU has only designated Facebook Messenger and Meta's Whatsapp services.

This means that once the DMA goes into effect, users will be able to freely instantly message contacts across different apps, like Signal or Telegram, from Meta's aforementioned platforms.

Officials are now investigating whether Apple's iMessage service should be added to the list.

Such a move would mark a major upheaval for Apple, which has designed its own ecosystem around its products, such as iPhones, iPads and Mac computers.

Hoang Ton (according to Reuters)

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