
DMA- A New Revolution in the Digital Market
Major tech companies around the globe are worried that the new competition rules implemented by Europe can affect their services even though
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CIO Applications Europe | Thursday, April 07, 2022

The impact of Digital Market Act on European Market
FERMONT CA: Major tech companies around the globe are worried that the new competition rules implemented by Europe can affect their services even though the new laws aren’t fully drafted yet. According to the new laws, major tech companies like Google, Apple, Meta, and Amazon might be forced to restructure after being labelled as gatekeepers.
The tech giants are concerned that sticking to the new strict laws could damage what made their products and the company in the first place. The tech giants should acquire consent before targeting advertisements based on personal data. Additionally, they should also allow the customers to select and use the browsers, search engines, and voice assistants according to their preferences. Importantly, the smaller services should be able to exchange messages with Apple’s iMessage.
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The European Union will pass the Digital MArket Act(DMA) this summer. Even though an exact timeline for implementing the act has not been declared yet. The tech companies believe that they will have 6 months to restructure as a gatekeeper. Sharing his thoughts on the act’s implementation,Matt Schruers, President of the Computer & Communications Industry Association,has said that whether the companies will be provided with advice from regulators in a way where they can minimize the impact of the act, is a point of discussion. Former Google CEO Eric Schmid expressed his concern that the implementation of DMA can increase the competition and keep the prices in check.
The same scenario has happened when the last major European tech proposal, the General Data Protection Regulation (GDPR), was implemented and the companies are still paying fines for breaking GDPR. By implementing the Digital Market Act, the European Union will bring drastic changes to the digital markets. However, it will take many years for judges and corporations to figure out what those changes will look like.
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