financetom
Business
financetom
/
Business
/
As Big Tech scrambles to meet EU rules, investigations seen as likely
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
As Big Tech scrambles to meet EU rules, investigations seen as likely
Mar 6, 2024 10:31 PM

BRUSSELS (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 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, 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.

($1 = 0.9173 euros)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Ouster Q4 Net Loss Narrows, Revenue Increases
Ouster Q4 Net Loss Narrows, Revenue Increases
Mar 20, 2025
04:26 PM EDT, 03/20/2025 (MT Newswires) -- Ouster (OUST) reported a Q4 net loss Thursday of $0.48 per diluted share, narrower than a loss of $0.95 a year earlier. One analyst polled by FactSet expected a loss of $0.60. Revenue for the quarter ended Dec. 31 was $30.1 million, up from $24.4 million a year earlier. Analysts surveyed by FactSet...
Planet Labs Fiscal Q4 Loss Widens, Revenue Rises; Q1, FY Sales Guidance Set; Shares Drop After Hours
Planet Labs Fiscal Q4 Loss Widens, Revenue Rises; Q1, FY Sales Guidance Set; Shares Drop After Hours
Mar 20, 2025
04:29 PM EDT, 03/20/2025 (MT Newswires) -- Planet Labs (PL) reported a fiscal Q4 non-GAAP loss late Thursday of $0.08 per diluted share, compared with a $0.06 loss a year earlier. Analysts polled by FactSet expected a loss of $0.02. Revenue in the three months ended Jan. 31 rose to $61.6 million from $58.9 million a year earlier. Analysts surveyed...
Three charged in arson attacks at Tesla dealerships, charging stations
Three charged in arson attacks at Tesla dealerships, charging stations
Mar 20, 2025
* Three charged with arson at Tesla sites, face 5-20 years if convicted * Activists target Tesla over Musk's role in Trump administration * Trump labels violence as domestic terrorism (Adds details of charges, background from paragraph 4 to end) By Andrew Goudsward and Jasper Ward WASHINGTON, March 20 (Reuters) - U.S. Attorney General Pamela Bondi said on Thursday three...
Nike Fiscal Q3 Earnings, Revenue Decline
Nike Fiscal Q3 Earnings, Revenue Decline
Mar 20, 2025
04:31 PM EDT, 03/20/2025 (MT Newswires) -- Nike ( NKE ) reported fiscal Q3 earnings late Thursday of $0.54 per diluted share, compared with $0.77 a year earlier. Analysts polled by FactSet expected $0.28. Revenue for the quarter ended Feb. 28 was $11.27 billion, compared with $12.43 billion a year earlier. Analysts polled by FactSet expected $11.02 billion. Shares of...
Copyright 2023-2025 - www.financetom.com All Rights Reserved