New antitrust rules that will transform the business model of tech giants could be ratified by the European Union. Meta, Apple, Amazon Google dramatically. These rules will be in effect as soon as October.

Thursday saw the historic conclusion of a deal between the European Parliament (EU) and EU member nations on Digital Markets Act. It is a comprehensive set of rules that aims to curb the market power for firms who have tight control over the internet economy.

These rules apply to “gatekeepers”, tech companies that have a minimum market capitalization (or $83 billion) of 75 billion euro or more in annual revenue within the EU. A minimum of 45 million users per month or 10,000 users for business in the EU are required.

It has yet to be passed. An official version has not been adopted by both the European Parliament (and the 27 EU member states).

Margrethe Vestager is the EU’s competition chief and she said that they expect the rules to come into effect “sometime around October.” She said that the DMA was similar to antitrust reforms in history, which she also compared with the energy, telecom and banking sectors.

Vestager stated that, “What we’ve learned in these years is we can correct certain cases and we can penalize illegal behavior,” at Friday morning’s press conference.

“But when they become systemic, we also need regulation. If there’s a systemic malbehavior or if entrenched positions then regulation is needed.”

She said that the Digital Markets Act would set rules for companies who play the role of gatekeepers.

Reforms were designed to make sure that tech companies don’t abuse their market positions to disadvantage smaller competition. It is often said that large internet companies operate “walled gardens”, closed systems which make switching providers difficult.

Firms that qualify as gatekeepers will be required to avoid setting their most important software — say, Google’s Chrome web browser — as the default option when a user sets up their device. It will be forbidden for them to give preference to certain services over other.

In addition, gatekeepers must ensure “interoperability” — or the ability for different apps to work with each other — between instant messaging services. This could lead to Apple’s iMessage having to share data with Meta’s Facebook Messenger and WhatsApp.

Apple expressed concern that DMA components could lead to users’ privacy being invaded and security breaches, as well as “prohibiting us from charging for intellectual properties.”

We are passionate about competition and creating healthy competitive markets throughout the world. As such, we plan to continue working with all stakeholders in Europe to reduce these weaknesses.”

Breaking the DMA rules can lead to severe consequences. Gatekeepers found to be in violation of the DMA may face fines as high as 10% of their total global revenue. Repeat offenders will face a 20% increase in fines. Meta would pay $17 billion to get this information.

A market investigation will be conducted against gatekeepers who break the rules three or more times within eight years. If necessary, the “behavioural of structural measures” may include a potential breakup.