Europe is leveling the playing field for tech companies

Photo by Taylor Vick on Unsplash

In big news for the tech world recently, representatives from all EU countries have agreed for the European Commission to be the sole enforcer of new tech rules and regulations, limiting the role of national antitrust watchdogs which had been sought. The DMA (Digital Markets Act), proposed by EU antitrust chief Margrethe Vestager last year, aims to curb the powers of the likes of Google, Facebook, Apple and Amazon, in a bid to make the European tech market more competitive and allow better opportunities for new companies.

While the DMA is yet to become law, which is expected to be executed in 2023, the Act sets a huge precedent. It was initially proposed in late 2020, to limit the end of unfair practices by internet-based “gatekeepers” such as Google and Amazon. And while business clients who rely upon these goliaths are expected to get a fair industry climate as a result, the measure has also been largely welcomed by consumer groups.

These plans to regulate tech giants are not only necessary, but have also been heavily demanded by specialists and consumers alike for years. Taking control away from individual countries also ensures cohesion in these regulations across Member States, limiting the influence of partisan interests and ensuring that the law, once in effect, is upheld independently of any political ideology. At the same time, the DMA will aim to prevent firms from gaining unfair advantages through their high positions.

The measure does, however, inevitably present its own challenges. As voices in the media sector have highlighted, there is a concern over loopholes within the Act which could be exploited by tech giants, which calls for revision, dialogue and continued work. On the other hand, think tanks such as the CSIS argue that the measure could drive European protectionism and damage international trade agreements.

Whichever way it is looked at, there is no doubt that the Act, much like GDPR before it, is an important step not just in terms of general digital safety and regulation, but also as a learning to be undertaken in strategising for smart cities. With such advancements in the tech industry and sectors, limiting abuse of power by private companies which, in some cases, have been accused of exercising an effective monopoly over their side of the market, will increase citizens’ digital safety, while making the European market much more competitive and inclusive, allowing it to become an even bigger hotbed of initiatives and ideas. But ensuring that it’s implemented the right way and bringing forth the best possible results, is going to take hard work and strong cooperation among Member States.