The EU is ready to dominate Apple, Google and other tech giants

The EU is ready to dominate Apple, Google and other tech giants

The EU has outlined its plans for the Digital Markets Act (DMA), which is going to focus heavily on mail apps to give users more choice and could have big repercussions for tech giants like Apple and Google.

According to the EU, its regulators agreed to new rules for the law, such as targeting companies that have more than forty-five million users and have a market capitalization of €XNUMX billion / €XNUMX billion / one hundred and nine billion Australian American dollars.

If these companies were to break a DMA rule, they could be fined up to XNUMX% of their total worldwide revenue at that point in time, plus an ancillary XNUMX% if other rules were repeatedly broken.

If the DMA is passed into law, companies will be required to enable certain features before they can be licensed in the EU, such as giving users the right to uninstall default apps or use their apps or services on other devices, other platforms and plus. But it could be the start of a slippery slope for Apple, Google and other vendors.

Analysis: Heading into Unforeseen Territory

Users love to choose when they choose to install apps on their new iPhone 22 Pro or Samsung SXNUMX Ultra. Arguably, it could go back to when Netscape was the only way to browse the web in the mid XNUMXs, before Microsoft monopolized IE, thanks to the internet browser included by default with its then-popular Windows XNUMX operating system. . .

Lawmakers apparently don't want history repeating itself with modern apps. Each and every day, many of us use WhatsApp, iMessage, Fb Messenger, etc. to keep in touch with friends and family.

But the political planet has become restless in this regard, especially with email applications that certain governments fear could be used to regulate illegal activities. The days of throwaway cell phones being phased out like on the TV show Breaking Bad are over: apps are supposedly the new inconvenience now.

We have a pact in #DMA! The last tripartite dialogue with @Europarl_EN and @EUCouncil ended with a good and strong agreement. Tune in to our press conference tomorrow at 8:45am 😊 pic.twitter.com/krHHsOqG8uMarch 24, 2022

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But the DMA law is not without its dangers. Behind each app is a team that has a roadmap of features and bug fixes that they intend to achieve over a certain period, and some of these apps are platform-exclusive, like Apple's iMessage, which is only available on macOS, iPadOS and iOS. .

Opening them to other platforms and apps would be counterintuitive to Apple's goals of building the full app and presenting it as an exclusive benefit for Apple products. Companies may argue that by forcing them to make their services and applications free for devices outside of their tightly controlled ecosystem, compatibility and quality issues could arise, negatively impacting the user experience these companies have built. worked hard.

It could also make once-simple tasks, like paying for something through Apple Pay on an iPhone, considerably more complex by offering other payment alternatives, like rival Google Pay.

However, the DMA law is not yet official: companies can discuss EU terms and covenants and do their due diligence, but the writing seems to be on the wall for users and companies, and the consequences of this law could be a disadvantage not only for companies, but also for users as a whole.