Current Affairs

The New Markets Act (DMA) is a law.

The New Markets Act (DMA) is a law.

The first inquiry under the new Digital Markets Act (DMA) digital law was announced by the European Union (EU) and included Apple, Alphabet, and Meta. The goal of the investigations is to find out if these tech behemoths have broken any laws related to the Digital Market Authority (DMA), which aims to control the actions of big tech corporations and encourage fair competition in the market.

Examinations of Alphabet and Apple

The first two probes target Apple's and Alphabet's anti-steering policies in particular. Tech companies are not allowed by the DMA to stop companies from telling their consumers about less expensive options for their goods or services that are available outside of an app store. Margrethe Vestager, the EU's competition commissioner, claimed that because Apple and Alphabet are still charging various recurring fees and limiting steering, their implementation of the DMA regulations on anti-steering looks to be against the letter of the law.

Apple's Adherence to DMA Requirements

The final inquiry looks into whether Apple met with its DMA duties to make sure that consumers may quickly alter default settings and uninstall programs from iOS. The investigation also looks at whether Apple actively provides customers with options to alter the iOS default services, including the web browser or search engine. The European Commission has raised concern that customers may not be able to fully exercise their choice of services within the Apple ecosystem as a result of Apple's actions, notably the design of the web browser option screen.

The Search Result Display on Alphabet

Targeting Alphabet, the fourth examination looks into whether the company's display of Google search results could cause users to favor Google over competing products and services. One example of this is Google Shopping. According to Alphabet, in order to comply with the DMA, they have made significant modifications to the way their services function in Europe. They plan to keep defending this strategy in the months to come.

The Pay and Consent Model of Meta

The subject of the fifth and last inquiry is Meta and its purported "pay and consent" model. The commission is investigating whether it is against the DMA to offer a subscription service free of advertisements or to need users to agree to terms and conditions in order to access the free service. The European Commission is worried that consumers who refuse to consent may not have a viable alternative to choose from under Meta's model, which would negate the goal of stopping gatekeepers from collecting personal data.

Possible Penalties and Repercussions

The European Commission has the authority to punish companies up to 10% of their global sales if they are found to have violated the DMA. If an infraction occurs more than once, the fines might go up to 20%. The commission has stated that while it hopes to wrap up its investigations in a year, the DMA does not set a strict timetable for the investigation's duration.

Crucial Information for Exams

The European Commission proposed the Digital Markets Act (DMA) in December 2020, and it went into effect on November 1, 2022.

The DMA seeks to stop big platforms from abusing their market dominance and to level the playing field for companies in the digital industry. Large digital companies that have to abide by EU law are referred to as "gatekeepers" in the DMA.

In addition, the European Commission is researching Apple's new pricing model and other terms and conditions for third-party app stores, in an effort to determine whether Amazon is favoring its own brand products over competitors on its online marketplace.

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The New Markets Act (DMA) is a law.