Image Source: Visual China

BEIJING, March 25 (TMTPOST) — The European Parliament, European Council and European Commission have reached an agreement on the Digital Markets Act, which will impose restrictions on tech giants such as Google, Apple, Amazon and Meta.

The Digital Markets Act, which is expected to enter into effect before the end of this year, will require tech companies like Apple, Meta and Google to allow their services to be intertwined with those of their counterparts. This means that Apple, for example, would have to allow iPhone users to download apps from rival app stores, according to members of the European Parliament.

The Digital Markets Act aims to make the digital sector fairer and more competitive, according to the European Council. The DMA defines clear rules for large online platforms. It aims to ensure that no large online platform that acts as a ‘gatekeeper’ for a large number of users abuses its position to the detriment of companies wishing to access such users.

The press release from the European Council says that for a platform to qualify as a gatekeeper, firstly it must either have had an annual turnover of at least 7.5 billion within the European Union in the past three years or have a market valuation of at least 75 billion, and secondly it must have at least 45 million monthly end users and at least 10 000 business users established in the European Union.

European lawmakers have agreed on the idea that messaging platforms should ensure the interoperability of their instant messaging services’ basic functionalities. In addition, gatekeepers need to seek users’ consent before using users’ data for pushing personalized advertisements. If a gatekeeper violates the rules laid down in the legislation, it risks a fine of up to 10% of its total worldwide turnover. For a repeat offence, a fine of up to 20% of its worldwide turnover may be imposed.