10 things that will change with the entry into force of the DMA, the law that keeps "Big Tech" on a tight leash
Posted: Sat Dec 28, 2024 9:38 am
On March 7, the new European Union (EU) Digital Markets Act (DMA) came into force , a regulation that raises the curtain on a new era for Internet users, who are provided with more rights, and for "Big Tech", which will now encounter more obstacles to deploying their full power and will therefore not be so omnipotent.
The DMA puts obstacles in the way of the six major technology providers, the so-called “gatekeepers” in the EU : Google, Amazon, Apple, Meta, Microsoft and TikTok. It will take some time for users to appreciate the specific effects of the new regulation, but the DMA promises to gradually (and radically) change the way smartphones and social networks have been used until now.
The 10 major changes that the DMA brings with it are those that we dissect below:
1. Alternative app stores
The opening of the iPhone to alternative app stores from other providers is probably the most talked-about effect of the DMA. The iOS 17.4 update to Apple's mobile operating system makes the hidden technical prerequisites of the new standard a reality, although the alternative "marketplaces" are not yet available on the Apple smartphone.
However, companies such as MacPaw and Mobinvention have already announced alternative app stores to Apple's App Store for the iPhone. This option is not, however, available for the iPad , as the relevance of the Apple company's tablets is not great enough to be at the mercy of the DMA.
2. Free choice of default applications
Until now, it has been very difficult or virtually impossible to use alternative applications to pre-installed apps such as Safari on the iPhone or Chrome on phones with the Android operating system. Apple, for example, only allows browsers on the iPhone that are based on its own WebKit technology.
With the arrival of DMA, users will have more freedom when choosing the apps they want to use by default on their mobile devices.
Under the Digital Markets Act, users will also have the power to delete apps pre-installed by manufacturers on their devices . Until now, deleting these types of apps was particularly complex on the iPhone.
3. Access to user data
The DMA allows third parties (and direct rivals of Big Tech) to gain access to user data on fair and non-discriminatory terms. And such data must be provided in a format that is easily readable by computers.
The aim of the Brussels regulation is to give users greater control over their personal data and to be able to use it for several services simultaneously. This change encourages innovation and competition, as new companies will be able to access the databases of companies already established in the market.
4. Interoperability of messaging services
The highly fragmented messaging services market will explode into a thousand pieces with the entry into force of the DMA. Users of different platforms such as WhatsApp, Signal or Telegram will be able to communicate with each other without having to change apps .
The DMA requires messaging services to ensure technical interoperability and not to engage in anti-competitive practices.
It remains to be seen how this new option will materialise, as players such as Signal and Threema have shown little or no interest in interoperability (largely because they distrust WhatsApp's data protection).
5. Prohibition of personalized advertising without user consent
Personalized advertising is absolutely omnipresent on the Internet and in apps, but many users consider it intrusive. For this reason, the DMA prohibits personalized advertising without the express consent of the user.
Consent must be voluntary, specific and informed. And the user must have the power to withdraw his or her consent at any time. The goal? To have greater control over his or her personal data and privacy.
6. Transparency in algorithms
The workings of the algorithms used by Big Tech to select search results or product recommendations often remain in the dark.
The DMA requires companies to account for the operation of their algorithms in order to ensure greater transparency and to enable users to better understand the decisions made by such algorithms.
7. Justice in the rankings
Until now, large technology companies have had the power to favour themselves and their own products in search results and online rankings. The DMA expressly prohibits this practice in order to guarantee a fairer and more competitive environment in which users have a wider range of products and services at their disposal.
8. Prohibition of linking services
Companies such as Amazon and Google have often used their market power to link the use of one service to the use of another service . The purchase of an eBook is, for example, often only possible when linked to a specific eReader. The DMA puts an end to this practice and allows users to freely choose between different services.
9. Greater user control over their own data
The DMA strengthens consumer rights and gives them greater control over their own data. Under the DMA, users can more easily download, transfer and delete their data . It should also be possible to transfer profiles, posts, followers and followings from one social network to another.
With the DMA, users will also be able to give their consent to the use of their personal data in a much more granular way, so that it can be used only for, for example, very specific products and services.
10. Mechanism for filing complaints
Users will have the option of contacting a complaints body in the event that they report violations of the DMA.
This will make it easier to ensure compliance with the new regulations and protect users from unfair practices.
If they violate the provisions set out by the DMA, companies will face fines of up to 10% of their global annual turnover and up to 20% of their revenue if they repeatedly breach the regulations.
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The DMA puts obstacles in the way of the six major technology providers, the so-called “gatekeepers” in the EU : Google, Amazon, Apple, Meta, Microsoft and TikTok. It will take some time for users to appreciate the specific effects of the new regulation, but the DMA promises to gradually (and radically) change the way smartphones and social networks have been used until now.
The 10 major changes that the DMA brings with it are those that we dissect below:
1. Alternative app stores
The opening of the iPhone to alternative app stores from other providers is probably the most talked-about effect of the DMA. The iOS 17.4 update to Apple's mobile operating system makes the hidden technical prerequisites of the new standard a reality, although the alternative "marketplaces" are not yet available on the Apple smartphone.
However, companies such as MacPaw and Mobinvention have already announced alternative app stores to Apple's App Store for the iPhone. This option is not, however, available for the iPad , as the relevance of the Apple company's tablets is not great enough to be at the mercy of the DMA.
2. Free choice of default applications
Until now, it has been very difficult or virtually impossible to use alternative applications to pre-installed apps such as Safari on the iPhone or Chrome on phones with the Android operating system. Apple, for example, only allows browsers on the iPhone that are based on its own WebKit technology.
With the arrival of DMA, users will have more freedom when choosing the apps they want to use by default on their mobile devices.
Under the Digital Markets Act, users will also have the power to delete apps pre-installed by manufacturers on their devices . Until now, deleting these types of apps was particularly complex on the iPhone.
3. Access to user data
The DMA allows third parties (and direct rivals of Big Tech) to gain access to user data on fair and non-discriminatory terms. And such data must be provided in a format that is easily readable by computers.
The aim of the Brussels regulation is to give users greater control over their personal data and to be able to use it for several services simultaneously. This change encourages innovation and competition, as new companies will be able to access the databases of companies already established in the market.
4. Interoperability of messaging services
The highly fragmented messaging services market will explode into a thousand pieces with the entry into force of the DMA. Users of different platforms such as WhatsApp, Signal or Telegram will be able to communicate with each other without having to change apps .
The DMA requires messaging services to ensure technical interoperability and not to engage in anti-competitive practices.
It remains to be seen how this new option will materialise, as players such as Signal and Threema have shown little or no interest in interoperability (largely because they distrust WhatsApp's data protection).
5. Prohibition of personalized advertising without user consent
Personalized advertising is absolutely omnipresent on the Internet and in apps, but many users consider it intrusive. For this reason, the DMA prohibits personalized advertising without the express consent of the user.
Consent must be voluntary, specific and informed. And the user must have the power to withdraw his or her consent at any time. The goal? To have greater control over his or her personal data and privacy.
6. Transparency in algorithms
The workings of the algorithms used by Big Tech to select search results or product recommendations often remain in the dark.
The DMA requires companies to account for the operation of their algorithms in order to ensure greater transparency and to enable users to better understand the decisions made by such algorithms.
7. Justice in the rankings
Until now, large technology companies have had the power to favour themselves and their own products in search results and online rankings. The DMA expressly prohibits this practice in order to guarantee a fairer and more competitive environment in which users have a wider range of products and services at their disposal.
8. Prohibition of linking services
Companies such as Amazon and Google have often used their market power to link the use of one service to the use of another service . The purchase of an eBook is, for example, often only possible when linked to a specific eReader. The DMA puts an end to this practice and allows users to freely choose between different services.
9. Greater user control over their own data
The DMA strengthens consumer rights and gives them greater control over their own data. Under the DMA, users can more easily download, transfer and delete their data . It should also be possible to transfer profiles, posts, followers and followings from one social network to another.
With the DMA, users will also be able to give their consent to the use of their personal data in a much more granular way, so that it can be used only for, for example, very specific products and services.
10. Mechanism for filing complaints
Users will have the option of contacting a complaints body in the event that they report violations of the DMA.
This will make it easier to ensure compliance with the new regulations and protect users from unfair practices.
If they violate the provisions set out by the DMA, companies will face fines of up to 10% of their global annual turnover and up to 20% of their revenue if they repeatedly breach the regulations.
Newsletter
Subscribe to our newsletter!
Follow MarketingDirecto.com on WhatsApp
Topics
Europe
Share
Badebles Hotels entrusts its communication and media relations to the Flecher.co agency
"Gate Ready is part of our strategy to democratize access to digital entertainment," M. Kinal (G2A.com)
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