The New Digital Markets Act: How the EU is Tackling Monopolies and Ensuring Fair Competition in the Digital World

By Eleanor Harrison Mar27,2024
New investigation proves EU’s commitment to regulating digital giants

The European Union (EU) has wasted no time in enforcing its new digital market regulation, the Digital Markets Act (DMA), which was introduced last year. The world’s largest digital companies, including Google’s parent company Alphabet, Meta (formerly Facebook), and Apple, were given until March 7 to make changes to comply with the regulation. However, despite claims from these companies that they had made changes, the Commission remained unconvinced.

On Monday, March 25, the Commission announced that it suspects Google, Meta, and Apple are still not acting in accordance with the regulation. As a result, an investigation has been launched, and potential fines could reach up to 10 percent of the companies’ global turnover. The goal is to bring these digital giants under control and ensure compliance with the new regulations.

The traditional fines imposed on these companies in the past have not been effective in curbing their behavior. For example, the EU fined Apple 1.8 billion euros for abusing its dominant market position in the distribution of music streaming apps. However, this amount was negligible compared to the company’s profits. The new Digital Markets Act gives the EU authorities the power to issue fines of up to 10 percent of a company’s global turnover for violations. This could have a more significant impact on these tech giants than traditional fines have had in the past.

The regulation also includes structural remedies such as forcing companies to sell certain parts of their business operations if they continue to violate the rules. The authorities can now intervene proactively to prevent anti-competitive practices and ensure a fair digital market. This approach is a departure from traditional competition laws that tend to intervene after the fact.

The new legislation aims to prevent dominant companies from stifling competition and innovation as seen in cases of tech giants favoring their own services over competitors.

For consumers, this can result in limited choices and potentially higher prices.

By taking a proactive approach and implementing strict regulations,

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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