European lawmakers have agreed on new rules they hope will curb the dominance of big tech companies.
Under the Digital Markets Act (DMA), giants like Google and Apple are being forced to open up their services and platforms to other companies.
Big tech companies have long been criticized for using their market dominance to edge out competitors.
“What we want is simple: fair markets … in the digital world,” said EU cartel boss Margrethe Vestager.
“Large gatekeeper platforms have prevented businesses and consumers from benefiting from competitive digital markets,” she said.
The announcement is the EU’s biggest regulatory move yet to crack down on what it defines as “antitrust” or anti-competitive behavior by primarily US-based tech companies.
“The agreement ushers in a new era of tech regulation around the world,” said German MEP Andreas Schwab, who led the negotiations for the European Parliament.
Under the proposed Digital Markets Act, Apple would be forced to open its app store to third-party payment options, rather than forcing users to use Apple’s own payment system.
It’s something Apple fought in the US during a high-profile court battle with Epic Games, the maker of Fortnite.
Google is being urged to offer users of smartphones running the company’s Android operating system alternatives to its search engine, the Google Maps app or its Chrome browser.
Apple would also be forced to relax its grip on the iPhone, allowing users to uninstall its Safari web browser and other company-imposed apps that users can’t currently delete.
The law’s targets include WhatsApp, Facebook Messenger, iMessage, the App Store, Google Play and many other services of major tech companies.
The EU wants to give users more choices about how people send messages. The new rules would require the technology to make its messaging services interoperable with smaller competitors.
However, Apple said it was “concerned that some provisions of the DMA create unnecessary privacy and security vulnerabilities for our users.”
Meanwhile, Google said: “While we support many of the DMA’s efforts related to consumer choice and interoperability, we are concerned that some of these rules could limit innovation and the choice available to Europeans.”
The law only affects companies valued at more than €75bn (£63bn), with annual sales of €7.5bn and at least 45m monthly users.
The legislation was originally proposed by Ms Vestager just over a year ago in response to what she saw as monopolistic behavior by Big Tech. She was famously frustrated at how mainly big US tech companies had managed to delay and even thwart EU attempts to fine them.
“The gatekeepers – they have to take responsibility now,” Ms Vestager said on Thursday.
Once implemented, the law will give Brussels unprecedented authority in regulating large tech companies.
Many big US tech companies are lobbying in Washington, emphasizing that such laws penalize successful American companies.
However, many US politicians are also interested in clipping the wings of Big Tech, with legislation currently in Congress that would also rein in its power.
With the agreement reached by the negotiators, the DMA now faces final votes in the European Parliament and ministers from the 27 EU member states.
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