EU DMA's new gatekeeper criteria now include Google, Apple, Facebook (Meta), Amazon, and Microsoft (GAFAM).
Because of this, seven tech giants show their concerns regarding the new rules of the Digital Markets Act.
Aside from the GAFAM tech firms, TikTok (ByteDance) and Samsung also claim that they would meet the gatekeeper criteria.
Even Booking.com said that it expects its business to fall into the gatekeeper category in 2024.
EU DMA: Google, Other Tech Firms Fall Under Gatekeepers
The EU DMA, which came into force in November 2022, states that companies with over 45 million monthly users and more than $82 billion in market capitalizations are considered as gatekeepers, as reported by Reuters.
Read Also : Spotify Exploits US Black Cultural Event Trademark Without Authorization, Complaint Claims
Tech firms that will fall under the gatekeeper category will face a set of prohibitions and obligations. Those who are unable to comply with the DMA rules could face very large penalties.
Tech Crunch reported that non-compliant companies will face up to 10% of global annual turnover.
EU officials said that the companies that will officially be under the gatekeeper category will be announced later this 2023 summer.
This means that more tech companies, aside from GAFAM, will be added to the list. However, since the DMA intends to target the most powerful platforms only, experts believe that the gatekeeper category list will not grow that much.
What It Means for GAFAM
Since GAFAM tech firms expect to fall under the gatekeeper category of the EU DMA, they could face the following prohibitions and regulations:
- Ban on self-preferencing.
- Have limited access to third-party data.
- Will be required to provide their app data to third-party companies.
- Will be required to allow sideloading of apps.
- Need to allow app developers to use another mode of payment.
- Must ask users for their consent before tracking their activities for ads.
Once the European Union confirmed the companies under the gatekeeper list, those included need to comply with the rules six months after the official designation.
Since the EU is expected to name the tech firms in September, GAFAM and other companies will have until spring 2024 (around March 2024).
If you want to learn more about the new EU Digital Markets Act and how it will affect GAFAM and other companies, you can click here.
