Google, Apple and Facebook face major changes within a year

the Digital Markets Act (DMA for intimates) should finally come into force late in the spring of 2023, according to recent statements by Margrethe Vestager. The Executive Vice-President of the European Commission spoke at the annual conference of the International Competition Network in Berlin, assuring at the same time that the text will indeed be limited to companies from a certain scale.

We know that these are mainly companies with at least 45 million active users on the soil of the Old Continent, or 10,000 in the case of professional customers. Other criteria such as the latest financial results, capitalization (> 65 billion euros) and the countries covered are taken into account, having as main objective to limit the growing power of giants such as Spotify, Meta or Apple.

Risks for Apple

The DMA has several main lines, starting with the blocking of certain practices ofself-preference. This strategy, which allows for example Alphabet to promote its own services for free on the Play Store or iOS to do the same on the App Store, is established to the detriment of players with fewer resources. Resetting the counters to zero would therefore give them more chances to develop.

Of course, the management of personal data is also on the front of the stage because some like Facebook reuse the statistics of their flagship platforms (like WhatsApp) to benefit others (the Business Manager). A transfer free of charge under the nose of the competition, which must pay to access it: nothing abnormal, but problematic because it can tend to monopoly on a larger scale.

When these regulations are put in place, it will then be compulsory for the defendants to do so. Otherwise, fines of up to 10% of their worldwide turnover are to be expected.

And in France ?

As is the case in this kind of international maneuver, each government will then have the possibility ofadapt guidelines in his sauce. However, we know that France is not to be outdone when it comes to alienating the biggest firms on the planet. The digital services tax (or “GAFAM tax”), adopted in July 2019 and to which Criteo is also subject, is proof of this.

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By: Keleops AG

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