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EU’s Digital Markets Act: Recap of Transformative First Week

 |  March 12, 2024

In its inaugural week, the European Union’s Digital Markets Act (DMA) has sparked significant transformations in the operations of major tech conglomerates.

Enforced with the aim of fostering competition within the EU’s digital markets, the DMA designates certain prominent online entities as “gatekeepers,” compelling them to adhere to stringent regulations to mitigate anticompetitive practices, reported The Verge.

The DMA’s impact has already been felt across the tech sphere, with industry behemoths such as Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft scrambling to align with its provisions. Key alterations include Apple’s concession to permit alternative app stores on iOS, Meta’s commitment to enabling WhatsApp interoperability with other messaging platforms, and Google’s pledge to afford EU users greater control over data sharing preferences.

However, these adjustments may only scratch the surface of the changes catalyzed by the DMA, as dissenting voices contend against the compliance strategies adopted by corporations like Apple, hinting at potential alterations in approach, reported The Verge.

One significant development spurred by the DMA involves Apple’s reversal of its decision to revoke Epic Games’ developer license, following an intervention by the European Commission. This turn of events paves the way for Epic Games to establish its iOS app store within the European Union.

Read more: The EU Digital Markets Act (DMA): A Competition Hand In A Regulatory Glove

Meanwhile, Apple has instituted a policy whereby iPhones departing the EU for an extended period will be barred from updating software sourced from third-party app stores. This move underscores Apple’s efforts to maintain control over its ecosystem while navigating the DMA’s regulatory landscape.

Meta, in response to the DMA, has outlined its plans for ensuring WhatsApp’s encrypted chats remain compatible with third-party services. While the DMA mandates interoperability within three months of request receipt, Meta anticipates potential delays in implementing these changes for public use.

Despite the DMA’s ambitious objectives, skepticism persists regarding its efficacy in reshaping the tech industry’s dynamics. Critics argue that compliance strategies devised by tech giants, largely self-prescribed, may fall short of inducing substantial shifts in power dynamics. Notably, Apple’s compliance approach has drawn criticism for potentially disadvantaging European developers, reported

As the tech landscape continues to evolve under the DMA’s influence, the efficacy and ramifications of these regulatory measures remain subjects of intense scrutiny and debate.

Source: The Verge