Explainer: What is Digital Markets Act brought by EU to rein in US tech giants?
Story highlights
The "Digital Markets Act" (DMA) is designed to protect consumers. It also gives rivals a better chance to survive against the powerful tech firms. It contains about 20 rules. It is basically a long list of dos and don'ts prepared in Brussels by the lawmakers, an AFP report said
A landmark law, Digital Markets Act, was agreed on Thursday to curb the market dominance of US big tech giants by negotiators of the European Parliament and EU member states.
These companies include Amazon, Google, Meta and Apple.
What is Digital Markets Act?
The "Digital Markets Act" (DMA) is designed to protect consumers. It also gives rivals a better chance to survive against the powerful tech firms. It contains about 20 rules.
It is basically a long list of dos and don'ts prepared in Brussels by the lawmakers, an AFP report said.
"The agreement ushers in a new era of tech regulation worldwide," said German MEP Andreas Schwab, who led negotiations for European Parliament.
What does it do?
It looks to avert the years of procedures and court battles, which are needed to punish Big Tech's monopolistic behaviour, where cases end with huge fines but little change is seen in how these giants do business.
"The Digital Markets Act puts an end to the ever-increasing dominance of Big Tech companies," Schwab added.
When implemented, it will give EU unprecedented authority to keep a check on decisions by the giants.
What is next?
As the deal has been reached by negotiators, the DMA will now face final votes in a full session of the European Parliament and by ministers from 27 member states of the EU.
Watch: UK consumer confidence slides as inflation and war worries mount
The rules may come into place from January 1, 2023, though the tech companies are asking for more time to implement it.
(With inputs from agencies)