©Reuters. File photo: European flags fly outside the European Commission headquarters in Brussels, Belgium, September 20, 2023.Reuters/Yves Herman/File photo
2/3
Written by Fu Yun Chi, Martin Coulter
BRUSSELS/LONDON (Reuters) – As the world's biggest tech companies revamp their core online services to comply with the European Union's landmark digital markets law, the changes come as some smaller It may give you a competitive advantage over your rivals and peers.
The DMA will rein in Alphabet's (NASDAQ:) Google, Amazon (NASDAQ:), Apple (NASDAQ:), TikTok owner ByteDance, Metaplatform (NASDAQ:), and Microsoft (NASDAQ:) to ensure level competition. It is a European attempt to build up. Competition from smaller rivals will intensify and, ultimately, competition from European players will intensify.
This far-reaching law is forcing some of the world's largest technology companies to make it easier for consumers to choose services from a variety of providers.
“The winners will be European small and medium-sized enterprises, which will have more choice and visibility than the big companies,” said Christophe Calgaty of advisory firm Digital Competition.
For example, Meta must make its Facebook Messenger and WhatsApp services interoperable with eligible rivals as long as they meet the company's technical and security standards.
This actually means that users of other messaging apps like Signal and Telegram (which have gained international attention for their focus on protecting user privacy) will soon be able to access their Messenger and Whatsapp contacts without having to switch apps. This means you may be able to chat with.
Meta says in its compliance report that it strikes a balance between maximizing security, safety and privacy for users while creating a viable approach for third-party providers interested in interoperating with Meta. states.
Similarly, users of Google's Android smartphones are guaranteed a default search engine selection when setting up their devices, creating a huge opportunity for alternative search engines to emerge, such as the privacy-focused DuckDuckGo and the eco-friendly Ecosia. It becomes.
Sophie Dembinski, head of public policy at Ecosia, said: “The implementation of these new rules is a step in the right direction, but the proof of the pudding is always in the eating and we do not see a meaningful change in market share. It's about whether or not.”
Google said in a blog post this week that the changes to search results will increase traffic for large intermediaries and aggregators, while decreasing traffic for hotels, airlines, retailers and restaurants.
Consumers in the EU also gained new privacy protections as the DMA introduced new rules on how these companies use their data.
For example, users can separate their Facebook and Instagram accounts, so information is no longer shared between platforms for tracking or targeting purposes.
app store war
While DMA provides smaller rivals with new avenues to access consumers, incumbent tech giants could also lose market share to their peers.
Apple probably stands to lose the most from the DMA, forced to open its lucrative App Store, and big tech competitors and smaller startups alike will jump on the opportunity. Dew.
Under the DMA, Apple must allow software developers to distribute apps to users in the EU outside of its own App Store.
Apple warns users that changes to the iOS mobile operating system, Safari web browser, and App Store may contain new avenues for malware, scams and scams, illegal and harmful content, and other privacy and security threats. and warned that it poses a huge risk to developers. threat.
Apple's critics argue that the company is only interested in protecting its profits because it takes a 30% commission on in-app purchases.
The new rules come amid an escalating spat between Apple and Epic Games, which has long criticized Fortnite.
According to the DMA, Fortnite had plans to launch its own app store on iPhone and iPad in the EU. But on Wednesday, Apple terminated the new developer account Epic created in Sweden. In response, Epic accused Apple of removing one of the Apple App Store's biggest potential competitors.
The commission has asked Apple for clarification and sees the issue as a priority, as it could be a test case for new rules.
