BRUSSELS, March 7 (Reuters) - From overhauling online
platforms to backroom engineering, Google, Apple ( AAPL ), Amazon ( AMZN ),
Microsoft ( MSFT ), Meta and TikTok owner ByteDance have scrambled over
the last six months to comply with landmark EU tech rules that
come into force on Thursday.
The Digital Markets Act (DMA) is one of the most
comprehensive regulatory actions to rein in so-called "Big Tech"
and is expected to reshape the global technology industry after
decades of unfettered growth.
Criticism from rivals and users and cautionary comments from
watchdogs suggest a couple of the six companies may be in the
regulatory crosshairs over potential non-compliance in the
coming months.
If any of the six tech giants are not compliant with the
Digital Markets Act (DMA) by the EU's Thursday deadline, they
could face fines up to 10% of their global turnover.
Apple ( AAPL ) is the most affected by the DMA, which forces
the iPhone maker to open up its closed ecosystem such as
allowing software developers to distribute their apps to users
in the European Union outside of its own App Store.
Yet its introduction of new fees such as a "core technology
fee" of 50 euro cents per user account each year even if
developers opt not to use Apple's ( AAPL ) App Store or payment system
has already caught EU antitrust chief Margrethe Vestager's eye.
Vestager said on Monday that novel fee structures should not
undermine the incentives for businesses to switch to rivals,
after handing a 1.84 billion euro ($2 billion) fine to Apple ( AAPL ) for
thwarting Spotify ( SPOT ) from showing other payment options
outside its App Store. Apple ( AAPL ) has said it will appeal the
decision and declined to offer further comment.
Rivals such as Swiss email service Proton, meanwhile, have
said Apple's ( AAPL ) compliance efforts do not go far enough.
With eight core platform services subject to the DMA, more
than any other company, and despite putting thousands of tech
engineers to work on its compliance efforts, Alphabet's
Google also runs the risk of a potential
investigation.
The company's mandatory overhaul of its search results will
benefit aggregators such as Booking.com and Expedia ( EXPE ),
which will gain more prominence and hence online traffic due to
their intensive lobbying with Google.
That has already caused friction with hotels, airlines and
restaurants, with some expecting to lose as much as 50% of their
online traffic and possibly millions of euros in revenues as
users are lured to large online intermediaries. Google declined
to comment.
Meta, which said Instagram and Facebook users will
be asked if their data can be shared between its services, could
also run the risk of an investigation. Meta declined to comment.
Microsoft ( MSFT ), Amazon ( AMZN ) and ByteDance may face
less scrutiny initially as EU regulators focus their resources
on one or two cases and ensure a case able to withstand a legal
challenge, people familiar with the matter said. Microsoft ( MSFT ) and
Amazon ( AMZN ) declined to comment while ByteDance did not respond
immediately to a request for comment.
Pressure for an EU investigation is also coming from the
some of the big six companies themselves.
At least one has told the European Commission that it was
not fair to have to play by the DMA rules while a rival flouts
them, one person with direct knowledge of the matter said.
Unlike EU antitrust investigations which can take years to
wrap, DMA enforcers have just a year to issue their findings.
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