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Lanon Wee

Five Tech Giants Labeled 'Gatekeepers' by EU Under New Competition Regulations

On Wednesday, the European Commission named Alphabet, Amazon, Apple, Meta, Microsoft and ByteDance as gatekeepers under its new Digital Markets Act. This groundbreaking piece of legislation seeks to promote competition in digital markets and guarantee more options for buyers. It could result in significant adjustments for the digital offerings of Big Tech firms. On Wednesday, the European Commission said it had designated six tech giants—Amazon, Alphabet, Apple, Microsoft, Meta and ByteDance—as "gatekeepers" under its Digital Markets Act—a set of rules which could potentially affect the business models of major digital platforms.These so-called gatekeepers—which the EU views as providers of key online services such as search, advertising, messaging and communications—have six months to meet the obligations set out in the DMA.The Commission is also initiating five investigations into US tech companies Microsoft and Apple, to determine if certain of their services should be classed as gatekeepers. They are considering submissions from both companies, whilst the EU will investigate whether Apple's iPadOS, the OS behind its iPad tablets, should be classed as a gatekeeper, although the Commission has acknowledged it doesn't meet the criteria.The DMA is a law designed to counter anticompetitive behavior from large tech firms, with smaller businesses having complained of their actions causing them to suffer. An example being the 30% fee which Google and Apple charge for in-app purchases—causing companies such as Spotify and Epic Games to brand it as too high.Apple has voiced its concerns about the privacy and data security implications of the Act, and warned that it could weaken the security of iMessage, with the EU looking for Apple to make it easier for the platform to integrate with rival services such as WhatsApp. The company said that it will focus on how to minimize the impacts of the law.Finally, the Commission labeled Chinese firm ByteDance, operator of social media platform TikTok, as a gatekeeper. Global regulators are keeping a close eye on the app, which has gained popularity among young users, amid concerns that Beijing may be using it to spy on people.

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