European Commissioner Margrethe Vestager let know that the Digital Markets Act will not take effect in October this year, but only in the spring of next year. This gives the tech giants some extra time to make adjustments.
Due to preparations, the Digital Markets Act (DMA) will come into effect later than originally intended. The European Commissioner indicates that staff must be hired, IT systems must be set up and procedures must be drawn up. All this has caused the delay.
Digital Markets Act
The DMA must curb the power of tech giants. Companies such as Meta, Apple, Amazon and Google have to make certain adjustments in Europe that mainly affect chat apps. For example, the Digital Markets Act (DMA) makes it mandatory that consumers must be able to send a message with WhatsApp to a user on iMessage. And that’s how a message sent via iMessage must arrive at Telegram. For most closed platforms, this will be a considerable technical challenge to integrate the different systems with each other. With this part of the DMA, the European Union wants to ensure that smaller players have the opportunity to reach a larger audience with their messaging app.
Another consequence of the DMA is the obligation that pre-installed apps on a phone must be able to be removed at all times. In addition, consumers should be able to choose the standard app for a service themselves. Similar to how one currently chooses a default browser and search engine on a new phone. There are still a number of major consequences for tech giants and you can find them in this article.
Monster fines
The European Parliament and Council still need to approve the Digital Markets Act. Once the legislation is in force, tech companies that break the rules can count on huge fines. These amount to up to 10 percent of their annual turnover worldwide. These can amount to 20 percent of their turnover, if they have not made any changes after such a fine.
You can read all about the 7 consequences for you as a result of the DMA in this article. You may also be affected by the Digital Markets Act. You can read exactly what that would be here. What do you think of the consequences of the Digital Markets Act? Do you think this will change the tech industry for the better or do you see even more positive or negative consequences for consumers? Let us know in the comments at the bottom of this article.
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