May 29, 2022
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US tech giants face tough new rules as EU countries, lawmakers clinch deal

US tech giants face tough new rules as EU countries, lawmakers clinch deal

BRUSSELS —  Alphabet’s Google, Amazon, Apple, Meta, and Microsoft could have to alter their core enterprise practices in Europe as EU nations and EU lawmakers on Thursday clinched a deal on landmark rules to curb their powers.

France, which presently holds the rotating EU presidency, mentioned in a tweet that there was a provisional settlement after eight hours of talks.

EU business chief Thierry Breton mentioned in a tweet that the deal would guarantee honest and open digital markets.

“What we want is simple: fair markets also in digital. Large gatekeeper platforms have prevented businesses and consumers from the benefit of competitive digital markets,” EU antitrust chief Margrethe Vestager, who proposed the rules simply over a 12 months in the past, mentioned in a press release.

“This means that the time of long antitrust cases, during which the authorities were lagging behind the big tech companies, is over,” mentioned EU lawmaker Andreas Schwab, who had steered the controversy within the European Parliament.

The Digital Markets Act (DMA) units out rules for on-line gatekeepers — firms that management knowledge and platform entry.

It can cowl gatekeepers in on-line intermediation providers, social networks, search engines like google and yahoo, working techniques, internet advertising providers, cloud computing, video-sharing providers, net browsers and digital assistants.

Beneath the DMA, the tech giants should make their messaging providers interoperable and supply enterprise customers entry to their knowledge. Enterprise customers would have the ability to promote competing services on a platform and attain offers with clients off the platforms.

The rules prohibit the businesses from favoring their very own providers over rivals’ or stopping customers from eradicating pre-installed software program or apps.

The DMA will apply to firms with a market capitalization of 75 billion euros, 7.5 billion euros in annual turnover and at the least 45 million month-to-month customers.

Corporations face hefty fines as much as 10% of their annual international turnover for breaching the rules and as a lot as 20% for repeat offenses.

Apple, which has lobbied intensively towards the DMA, reiterated its worries.

“We remain concerned that some provisions of the DMA will create unnecessary privacy and security vulnerabilities for our users while others will prohibit us from charging for intellectual property in which we invest a great deal,” it mentioned in a press release.

Google, which additionally cranked up its lobbying within the final 12 months, echoed the identical sentiments.

“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. We’ll now take some time to study the final text, talk with the regulator and work out what we need to do to comply,” it mentioned in a press release. — Foo Yun Chee/Reuters

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