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Europe will soon introduce controversial new rules for large technology companies

by Roman B.
May 12, 2022
in Cryptheory News
Reading Time: 2 mins read

In Europe, the implementation of the Digital Markets Act (DMA) for large technology companies is postponed to spring 2023. Let’s look at what the bill contains and why it was postponed.

DMA for large technology companies in Europe

A new anti-monopoly law for large technology companies in EU was expected in October this year. Instead, the law will approve digital markets (DMA) postponed until the spring of next year. This was announced by Executive Vice President Margrethe Vestager during the International Competition Network (ICN) conference.

The bill, introduced two years ago and aimed at large technology companies with a market capitalization of over $ 75 billion, aims to reduce the monopoly power that these large companies achieve.

For example, DMA includes some key rules, such as the obligation to allow the download of applications from an alternative store or to ensure the interoperability of messaging platforms. Or a rule that requires large technology platforms to detect an algorithm that causes online advertising to be targeted based on Internet users’ preferences.

The fines envisaged for those who do not comply with these rules can also reach up to 10% of the company’s turnover. When everything seemed to be decided so that the final text could be approved in October, Commissioner Vestager said instead that the approval date would be postponed to next spring.

Reasons for postponing the law

The Commissioner said more time was needed to achieve a shared text that would guarantee fair and effective rules at the same time.

At the end of last year, when it seemed that Parliament and the Commission had reached an agreement on a joint text and that it could be approved in a few months, Andreas Schwab, one of the legislators, said:

“The EU stands for competition on the basis of quality, but we do not want larger companies to continue to grow without improving at the expense of consumers and the European economy. Today, it is clear that competition rules alone cannot solve all the problems we face with technology giants and their ability to set rules by engaging in unfair commercial practices. The Digital Markets Act will eliminate these practices and send a clear signal to all consumers and businesses in the single market: the rules are set by the co-legislators, not private companies!

Binance coin price prediction 2022 – 2030

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Roman B.
Roman B.
I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.
Roman B.
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