The European Union has introduced new laws to keep the market power of massive tech companies in check.
The new Digital Markets Act or DMA aims to blacklist the tech company's anti-competitive practices and force messaging apps like Messenger, WhatsApp, iMessage, and others to open up to smaller platforms.
EU Reveals New Laws for Tech Companies
The EU revealed a press release on the matter. During the 8-hour long trilogue between the Parliament, Council, and Commission, the lawmakers agreed that the largest messaging platforms such as Facebook Messenger, Whatsapp, and iMessage would have to open up interoperate with smaller platforms.
The users of both small and massive platforms would be able to exchange messages, make video calls, and send files across the apps, thus giving them more choices.
As for the interoperability obligation for social networks, co-legislators agreed that the provisions of interoperability would be assessed in the future, according to XDA Developers.
Based on the EU's statement, it is evident that it wants popular messaging apps to offer interoperability with other, smaller apps.
However, it is unclear if the law will also force the popular platforms to work together, like allowing users to send messages from one app to another.
Companies like Meta and Apple will have to open up their messaging ecosystems if that does happen. While this could benefit end-users and small messaging platforms, it may cause some privacy problems.
Since all of the major messaging platforms use different methods for encryption, offering interoperability while maintaining user privacy could be challenging.
In order to mitigate any issues, the EU will include a deadline in the final agreement that will give the tech companies a chance to implement different levels of interoperability in the future.
Tech companies that refuse to abide by the new EU rules will be fined up to 10% of their total worldwide turnover in the preceding financial year.
The fine will eventually increase to 20% for repeated infringements. The EU might also ban tech companies from buying other companies for a period of time in case of infringements, according to MacWorld.
Tech Companies React to New Regulation
An Apple spokesperson told The Verge that the company is concerned the provisions of the new EU law will create privacy and security issues for users. The tech giant is also concerned that other provisions could prevent them from charging for intellectual property.
Apple's spokesperson added that the tech giant plans to continue to work with stakeholders throughout Europe in the hopes of mitigating the vulnerabilities.
Aside from the messaging interoperability requirements, the Digital Markets Act will also go after the anti-competitive practices of massive tech companies.
The regulations will impose restrictions on combining data from different sources. The regulation will also allow users to download and install apps from third-party platforms, prohibit companies from creating bundled services, and it will prevent self-preferencing practices.
The Digital Markets Act has not passed yet. The EU has to finalize the language first. Then it will have to be approved by the Parliament and Council.
According to Margrethe Vestager, the EU's Commissioner for Competition, the DMA should roll out in October.
In 2021, the EU rolled out a new law for AI that might also affect tech companies.
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This article is owned by Tech Times
Written by Sophie Webster
