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Post: Apple and Microsoft challenge regulatory scope of EU’s Digital Markets Act



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Apple and Microsoft are attempting to circumvent the European Union’s Digital Markets Act (DMA) by arguing that neither iMessage nor Bing are sufficiently popular enough to be regulated by the legislation.

The DMA was approved in July 2022 and is designed to rein in the power of large tech corporations such as Apple, Amazon, Google and Meta, forcing them to change how they integrate digital services and handle customer data.

It enables a range of antitrust action while also addressing issues including the right to uninstall software on devices, greater personal data access controls, enhanced advertising transparency, an end to vendors self-preferencing their own services, and a stop to certain restrictive app store requirements for developers.

The legislation is set to target large companies—called “gatekeepers”—that provide “core platform services” and are most likely to enact unfair business practices. This includes companies with a market capitalization of at least €75 billion ($81 billion) or sales in Europe of over €7.5 billion, at least 45 million monthly users in the EU, and which provide certain applications such as web browsers, virtual assistants, and messaging or social media services.

The EU is set to publish the list of gatekeepers  that will be subject to the legislation on September 6.

However, Microsoft has argued that Bing should not be subject to the same regulatory obligations as its rival Google, according to a report by the Financial Times, as Bing only has around a 3% market share and under the obligations placed on platforms by the DMA, Microsoft would be required to give users the choice of other search engines, which the company argues could offer a further boost in market share for Google.

Copyright © 2023 IDG Communications, Inc.

Lora Helmin

Lora Helmin

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