Big Tech Faces Crackdown as EU Negotiators Back Tough Law

tech.hindustantimes.com:

Tech giants face sweeping changes to how they operate in the European Union after the bloc hammered out a deal on a new law that paves the way for multibillion euro fines and acquisition bans for the worst transgressors.

The new Digital Markets Act, agreed on by negotiators in Brussels late Thursday, targets so-called gatekeeper companies -- platforms like Facebook and Google -- with the power to control distribution in their markets.

Key rules lawmakers set for gatekeepers include: Making their messaging apps interoperable to prevent users being tied to one network Letting users choose a default search engine, web browser and virtual assistant when they buy a new smartphone Ensuring fair access conditions for their app stores Gaining explicit consent to combine personal data to target ads Banning the companies from ranking their own products higher than others Fines of as much as 10% of a company’s global annual sales will apply for an initial breach of the law, rising to 20% for repeat infringements. Companies that routinely violate the rules will be temporarily banned from conducting mergers and acquisitions.

Negotiators agreed that “gatekeepers” include companies with a market value of 75 billion euros ($82.6 billion) or 7.5 billion euros in annual revenue within the EU, and at least 45 million monthly end users and 10,000 yearly business users of at least one core platform, including web browsers and virtual assistants.

The legislation, which is likely to take effect early next year, will apply to companies such as Amazon.com Inc., Facebook parent Meta Platforms Inc., Google parent Alphabet Inc., Microsoft Corp., Apple Inc. and Booking Holdings Inc. Online marketplaces Zalando and Alibaba could also be affected.

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