What does it imply that Google is a “gatekeeper” under the EU’s new Digital Markets Act (DMA) and how does that affect Google products?
HIGHLIGHTS
- A “gatekeeper” under the new EU Digital Markets Act (DMA) is Google.
- “Gatekeeper” businesses must alter their offerings to provide customers greater options and discretion.
- The DMA seeks to strengthen competition while reducing the influence of powerful IT giants.
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In accordance with the new Digital Markets Act (DMA), which seeks to improve competition in the tech sector, the European Commission has identified Google as a gatekeeper. In March 2024, the law will go into effect.
Google is one of many significant tech companies that must adhere to the regulations within six months, along with Apple, Amazon, Meta, Microsoft, and ByteDance.
DMA aims to curtail the influence of these businesses in the digital areas where they have a strong foothold.
Google released a statement in which it stated that it has “always believed in offering people and businesses choice and control” whileThe using its services.
Why Does This Matter?
Google must update its Android app store, maps, and other products to comply with the DMA.
To strike a balance between achieving the new regulations and delivering a positive customer experience, the organization intends to contact experts. Giving customers more platform switching alternatives and better data management tools will be its main priorities.
The Wider Effects Of DMA On Big Tech
One of the strictest pieces of law in the world, the SMA, targets the market domination of the biggest technological corporations worldwide.
It tries to accomplish the following goals:
Give users additional options than just the default apps
allowing substitute app stores
Make messaging apps compatible by force
Stop giving a company’s services a boost in rankings
The use of tailored advertising will also require user permission, and business clients will benefit from increased ad data openness.
DMA’s Impact On Different Digital Sectors
The EU Commission declared 22 services from major digital firms, including TikTok’s owner ByteDance and Alphabet, Amazon, Apple, Meta, and Microsoft, to be the “gatekeepers” of online services.
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The accreditation requires that the businesses make their goods interoperable and able to connect with competing apps. Additionally, users are not restricted to the built-in messaging apps on their devices but may choose which ones they want pre-installed.
The businesses have six months to make the necessary adjustments to comply with the new rules.
This is how different industries are anticipated to be impacted by the DMA.
Advertising
The DMA mandates that “gatekeepers” obtain express consent before tracking users for commercial gain.
Business clients of Amazon, Google, and Meta who use online advertising services will have the opportunity to obtain information about their ad campaigns under the DMA.
Play Stores
On iPhones and Android smartphones, Apple and Google will need to permit third-party app shops in addition to their own.
Android users can currently download apps from sources other than the Google Play Store, but they must disable some security features.
There may be a large number of additional app stores available after the DMA goes into force. Users would have more alternatives as a result, but there could also be security dangers.
Standard Apps
Customers will be able to choose the preferred default apps for their devices through the DMA.
The default app store, web browser, maps app, and other defaults will need to be easily switchable by users for companies that manage access to devices and apps (gatekeepers).
Search engines, social media, and online shopping
Online giants like Amazon, Facebook, and Google won’t be able to give their businesses preferential treatment or higher results under the proposed laws.
These businesses would have to rate their products equally with those of their competitors under the regulations.
Messaging
The DMA’s new interoperability guidelines will call for gatekeeping messaging platforms to link and cooperate with other messaging service
Users using gatekeeper platforms, such as WhatsApp or iMessage, will be able to effortlessly interact with contacts who use other messaging services, such as Telegram or Signal.
Looking Forward
The DMA’s effects will be more noticeable as businesses implement steps to comply by 2024.
Regarding Google, the business declares that it will cooperate with authorities to fulfill the obligations.