European Union Takes Action to Limit the Power of Major Tech Companies

European Union regulators are launching new investigations into Microsoft Corp. and Apple Inc. as part of their efforts to regulate the digital markets. These investigations have the potential to bring about substantial changes in the way these companies operate within the region.

Alphabet Inc.’s Google Search, Apple’s App Store and Amazon.com Inc.’s marketplace are among 22 services subject to the EU’s Digital Markets Act, it was announced Wednesday. Now, companies such as Bytedance Ltd’s TikTok and Meta Platforms Inc.’s Facebook have six months to comply with the new rules or challenge them in EU court.

However, the European Commission, the bloc’s executive arm, said it needed more time to determine whether Microsoft’s Bing, Edge and Advertising services and Apple’s iMessage should be exempted from the new rules. The investigation does not lead to a fine.

Microsoft, on the other hand, claims that Bing is too small a competitor for Google, so it should be released, while Apple says that it does not have the data available to calculate the number of iMessage users.

The Commission has also launched an investigation into whether Apple’s iPad operating system should be included in the regulation.

The new rules, which will enter into force in March, impose a strict regime on companies whose practices have previously led to billions of euros in fines and tax orders from the watchdog.

It is illegal for certain platforms to favor their own services over competitors’ services. They must not combine personal data across their services, they must not use data they collect from third-party merchants to compete against them, and they must allow users to download apps from competing platforms.

“We remain very concerned about the privacy and security risks that DMA poses to our users,” Apple said.

“We are very disappointed that market research was not conducted prior to this decision, and we are evaluating our next steps,” a TikTok spokesperson said in an email.

The new obligations may lead to iPhone users being able to download applications from competing app stores, Meta is not allowed to combine user data between Facebook and Instagram without permission, and Google is prohibited from favoring its own search themes – such as Shopping services. Search results.

“We are finally curbing the economic power of the six gatekeepers, giving consumers more choice and creating new opportunities for smaller, innovative technology companies,” said Thierry Breton, EU Commissioner for the Internal Market.

Margrethe Vestager, the EU’s long-time cartel representative, announced on Tuesday that she will leave her post as chairman of the European Investment Bank.

Microsoft said in a statement that it welcomes research into some of its services, which it described as “challenging the market.”

Spokespeople for Google and Meta said the companies would review Wednesday’s decision, while Amazon said the company was “committed to providing services that meet the demands of our customers in Europe’s changing regulatory environment.”

In July, the Commission announced that several platforms had notified the EU that they met the thresholds to designate the so-called as a gatekeeper, which includes at least 7.5 billion euros ($8.2 billion) in sales across the bloc, or a market capitalization of the euro. 75 billion and more.

In order to apply the rules, platform services also require more than 45 million monthly active end users and more than 10,000 active business users per year in the EU.

EU officials expect their decision to be taken to court in cases that are likely to drag on for years.