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On 6 March, Europeans will see changes to large tech firms’ services. Google’s search results will give more prominence to its competitors’ offerings. Consumers will get more choices about how their data is handled. Apple’s closed ecosystem will become more open – allowing users to download apps without using Apple’s App Store. The reason for these changes is that Europe’s long-awaited Digital Markets Act (DMA) will start to bite. The law imposes rules on big firms’ platforms – including operating systems, online marketplaces, messaging services, social media networks, browsers, and digital advertising services – with the somewhat vague goal of making digital markets more ‘contestable’ and ‘fair’. However, the DMA’s elusive objectives make it hard to know whether the law will be a success. The DMA may help solve some problems with digital competition – but it leaves others unresolved and may even create new ones.
Despite the flaws in the Digital Markets Act, it is in large tech firms’ interests to make the law a success. If it fails, large tech firms will probably find themselves facing even tougher regulation.
The DMA passed its first hurdle – allowing the Commission to quickly and efficiently decide which services to regulate – with a reasonable degree of success. As Table 1 shows, the largest tech firms mostly accept that their flagship services must follow the DMA’s rules. The Commission also quickly agreed with tech firms that some popular services did not warrant regulation. Some cases have proven more complex. The Commission is still investigating whether to regulate Apple’s iPad operating system, and should reach a decision in September 2024. On top of that, ByteDance (which runs the social media platform TikTok), Meta and Apple have all launched litigation in EU courts about whether their services should be regulated. Apple, for example, argues that its App Store should only be regulated when it distributes apps for iPhones, not for other Apple products. The Commission will also have to decide shortly whether some other services, like Booking.com’s online travel platform and the X (formerly Twitter) social network, should be regulated...more at CER