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U.S tech giants face tough new rules as EU countries, lawmakers clinch deal -Breaking


© Reuters. FILE PHOTO – European Union flags fly outside of the EU Commission Headquarters in Brussels, Belgium on May 5, 2021. REUTERS/Yves Herman

By Foo Yun Chee

BRUSSELS, (Reuters) – Alphabet’s Google (NASDAQ) and Amazon (NASDAQ) and Apple (NASDAQ) and Meta (NASDAQ) could have to alter their core European business practices as EU legislators and countries reached a landmark deal to limit their power on Thursday.

France is currently the rotating EU president and tweeted that there had been a provisional deal after eight hours. Thierry Breton (EU industry chief) also confirmed this news via a Twitter.

Margrethe Vestager (EU antitrust chief) proposed the Digital Markets Act, which was created over a year ago to address the slow pace in competition investigations.

Tech giants must make all their messaging services compatible and give business users access. Businesses would have the ability to market competing products or services and make deals off of platforms.

Companies are prohibited from using their services to favor themselves over competitors or prevent users from installing pre-installed apps or software.

DMA applies to businesses with market capitalizations of at least 75 billion euro, annual turnovers exceeding 7.5 billion euros and monthly usages not less than 45 million.

Businesses could be fined up to 10% for breaking the rules. Repeat offenders can face as high as 20%.

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