European authorities indicated on Tuesday that big digital companies might face unprecedented restrictions on how they do business as early as next year, as EU lawmakers finalized a new regulation that would affect Google, Meta, Apple, and Amazon.
Negotiators from the European Parliament and EU member states will meet on Thursday, according to multiple sources, in the hopes of reaching an agreement on the legislation.
According to French MEP Stephanie Yon-Courtin, a key backer of the law, “We really expect that we can reach an agreement on Thursday, that we can endorse the Digital Markets Act.”
She went on to say that this is “a historic book that will certainly change the rules of the game.”
Once passed, it would give Brussels authorities unprecedented ability to scrutinize the giants’ business actions in real-time, notably when they acquire promising startups.
The guidelines would also include a list of dos and don’ts, such as compelling Apple to open up its app store to other payment systems, which the iPhone maker has fought tooth and nail in the courts for years. The Digital Markets Act (DMA) might also require Google and Facebook, which is controlled by Meta, to release sensitive data from their world-dominating ad systems, potentially exposing them to new competitors.
Legislators from the European Parliament are pushing for interoperability across messaging apps like WhatsApp, Signal, and Apple’s iMessage in their final push.
Fines of up to 10% of annual global sales might be imposed if the regulations are broken, with some MEPs pressing for even harsher penalties for repeat violators.
The proposed laws have been fiercely opposed by the big tech giants. They’ve also been chastised in Washington for the idea that they unfairly target American businesses, despite the fact that in the current draughts of the law, non-American behemoths like Booking.com and TikTok might be included.
The DMA would face final votes in a full session of the European Parliament as well as ministers from the EU’s 27 member states if negotiators reach an agreement.
The measures could take effect on January 1, 2023, though tech corporations have requested more time to implement the law.
