The European Union plans to start enforcing the Digital Markets Act (DMA) in spring 2023, according to Commission executive vice president Margrethe Vestager, who spoke last week at the International Competition Network (ICN) conference.
The DMA, which still needs final approval from the Council and Parliament, defines gatekeepers as enterprises with a market value of more than €75 billion ($82 billion) and at least 45 million monthly users on a social network or app. If found in violation of the DMA’s standards, these entities face fines of “up to 10% of their total worldwide turnover in the prior fiscal year,” with the cost increasing to 20% in the case of a second infraction.
According to the DMA, gatekeepers will have three months to notify the Commission of their position, followed by a two-month wait for confirmation from the EU. This lag, combined with the delayed DMA implementation, could mean that we won’t witness any major conflicts between the EU and Big Tech until the end of 2023.
The DMA, if passed, will very likely alter the business models of the world’s tech behemoths. For one thing, it may necessitate Apple permitting customers to download programs from sources other than the App Store, something Apple CEO Tim Cook strongly opposes, claiming that sideloading might “damage” an iPhone’s security. It may also necessitate WhatsApp and iMessage to be compatible with smaller platforms, which may make it more difficult for WhatsApp to maintain end-to-end encryption.
