New EU rules regulating tech giants likely to set standard

EU rules tech giants
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New EU rules regulating tech giants likely to set standard

BRUSSELS, March 25 (Reuters) – Landmark EU rules targeting tech giants Alphabet unit Google, Amazon, Apple, Meta and Microsoft are likely to set a worldwide standard and may even force changes in the tech giants’ business models, lawyers and experts said.

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Europe’s antitrust chief Margrethe Vestager on Thursday won backing from European Union members and EU lawmakers for her proposal, the Digital Markets Act (DMA), to rein in the powers of the tech giants via legislation for the first time, rather than lengthy antitrust investigations. read more

The DMA sets out a list of dos and don’ts targeting each tech giant’s core business practices.

“DMA is here to stay and will be quickly mirrored in a number of countries. The flexibility that big tech had will be constrained, as the regulatory ‘straitjacket’ will get tighter globally,” said Ioannis Kokkoris, competition law professor at Queen Mary University in London.

Vestager’s switch to legislation came amid frustration over slow-moving antitrust investigations that deliver remedies criticised by rivals as inadequate, with Google often cited as an example despite being hit with more than 8 billion euros ($8.8 billion) in fines.

The new rules may even spur tech giants to rethink their strategy on long-term goals and swap their business models for others.

“If it succeeds, the DMA will put pressure on monopoly rents of gatekeepers in tipped markets, thereby encouraging them to move towards more long term innovation targets,” said Nicolas Petit, professor of competition law at the European University Institute in Florence.

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“I think the DMA indirectly places a premium on business models based on subscriptions or device level monetisation. We might see more (increased) prices, and vertical integration into hardware in the future,” he said.

Analysis: New EU rules regulating U.S. tech giants likely to set global standard  Reuters

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