The European Union parliamentarians have agreed on the scope of the new Digital Markets Act which will include Apple, along with other tech giants. To contain the growing power of tech giants on the digital market and to maintain a competitive digital economy, European Competition Commissioner, Margrethe Vestager proposed the “Digital Markets Act” in 2020.
However, it was reported that the new regulatory laws could face long-term delay because of disagreement amongst the politicians over the scope of the new legislation and the plan might not include Apple. But now, those differences are resolved and the widened scope of the “Digital Markets Act” covers Apple along with Google, Amazon, Meta (former Facebook), Microsoft, Booking, and Alibaba.
The new EU antitrust law could force Apple to relinquish control over App Store
According to Financial Times latest report on the subject, the EU parliamentarians have agreed that new law will apply to companies with a minimum €80bn market value which offers at least one internet service which applies to the iPhone maker. The formal voting will take place in the European Parliament next week.
The European Parliament’s main political parties agreed on Wednesday to a deal that would apply to companies with a market capitalisation of at least €80bn and offering at least one internet service, such as online search, according to four people with direct knowledge of the discussions.
It means the rules would draw more companies than thought into the EU’s planned Digital Markets Act (DMA), a wide-ranging effort to rein in Big Tech. Brussels hopes to implement the act next year. Companies including Google, Amazon, Apple, Facebook and Microsoft would fall under its scope, alongside Netherlands’ Booking and China’s Alibaba.
As the Cupertino tech giant offers several services like iCloud, Music, TV+, Fitness+, and most important of them all App Store. The upcoming Digital Markets Act aims to limit the company’s control over its digital marketplace and would force it to allow sideloading on iOS devices. Under the new legislation, gatekeepers, “companies with an entrenched position, a significant impact on the EU market and with a core platform service which is an important gateway to users”, will be made to shun anti-competitive practices, misuse of their platforms, and more.