Europeans can now choose what online services, including browsers and search engines, to use for their mobile phones and computers. They can also choose where to download iPhone apps and how their personal online data is used.
They are part of changes required under the Digital Markets Act (DMA). The DMA is a set of European Union laws that six large technology companies had to start following recently. Those companies include Amazon, Apple, Microsoft, Google parent Alphabet, Facebook owner Meta, and TikTok owner ByteDance.
The DMA is the latest in a series of laws that Europe has passed as a world leader in controlling large tech companies. The companies have followed by changing long-held ways of doing business. For example, Apple will permit people to download smartphone apps outside of its App Store.
Here’s a look at how the Digital Markets Act will work:
What companies have to follow the rules?
Some 22 services, from operating systems to messenger apps and social media companies, fall under the DMA.
They include Google services like Maps, YouTube, the Chrome browser and the Android operating system. Others are the online store Amazon’s Marketplace and Apple’s Safari browser and operating system iOS.
Meta’s social media and messaging sites Facebook, Instagram, and WhatsApp are included as well as Microsoft’s operating system Windows and social media site LinkedIn.
The companies face the threat of large fines of up to 20 percent of their yearly worldwide income for repeated violations. That could amount to billions of dollars. And they also face the threat of a breakup for major violations.
What effect will the rules have around the world?
Zach Meyers is an assistant director at the Center for European Reform, a research organization. He said, “If it works, many Western countries will probably try to follow the DMA…”
Already, countries like Japan, Britain, Mexico, South Korea, Australia, Brazil, and India are writing their own versions of DMA-like rules. The aim is to prevent tech companies from having too much control over online markets.
How will downloading apps change?
In one of the biggest changes, Apple has said it will let European iPhone users download apps outside its App Store, which comes with its devices.
Apple has long opposed such a move. A large part of its income comes from the 30 percent charge it demands for payments made through iOS apps. Apple has warned that downloading apps outside of its store will come with added security risks.
Now, Apple is cutting those charges for developers in Europe that choose to stay with its payment-processing system. But Apple is adding a 55-cent fee for each iOS app downloaded through outside app stores. Critics say that will persuade existing free apps to not use outside stores.
Avery Gardiner is a director at the music company Spotify. She said those outside app stores will never grow because they will be missing many apps that would need to be there for people to want to use those stores.
How will people get more choices online?
Users of mobile devices will have more choices online.
They will not be forced to use certain services like Apple’s Safari browser or Google search engine. Android users can choose which search engine to use, and iPhone users will get to choose which browser will be their main one. Microsoft, meanwhile, will stop forcing people to use its Edge browser.
Some Google search results will show up differently because the DMA bans companies from giving preference to their own services. So, for example, searches for hotels will now show a list of booking sites like Expedia.
Users can also stop companies from using their online data to target them with advertising.
The DMA also requires messaging systems to be able to work with each other.
Meta owns two messaging apps that fall under the rules. So it is expected to come up with a proposal on how Facebook Messenger and WhatsApp users can send messages, videos, and images to each other.
I’m Gregory Stachel.
