For years now, the most serious threat to dominant Big Tech companies has been regulation rather than competition from upstarts. Last week, the European Union (EU) finally agreed on a landmark legislation to regulate “digital gatekeeper platforms” including search engine behemoth Google’s holding company Alphabet, social media giant Facebook’s owner Meta Platforms, as well as e-commerce supremo Amazon.com and iPhone maker Apple.
On March 24, the continent’s governing bodies— European Commission, European Parliament and 27 member states — agreed on the final text of the Digital Markets Act (DMA) they had been negotiating for nearly two years. Approval of the by the European Parliament in late June is now seen as a mere formality. The new law will be formally adopted in October and take effect next year. Top US-based global tech platforms are expected to appeal to stall its immediate implementation.
Yet, even with the court-mandated delays in implementation, it is clear that the ground breaking European regulation will change the global tech platforms like Amazon, Google, Facebook and Apple forever.