It’s Wednesday morning, and I am, as usual, cycling to Uni. It’s a pleasant ride; without headwind, it’s just under half an hour, which is just enough time to listen to some news. The biggest news by BNR:
Apple has to repay 13 billion euros plus interest due to a tax deal in Ireland, and Brussels won another case against an American tech giant; Google has to pay nearly 2.5 billion for abuse of power.
This got me thinking: if global tech companies like Google, Apple, Meta (Facebook), Amazon, and Microsoft are forced by European regulations to change how they operate in Europe, will this change the kinds of services we Europeans are offered by these companies?
EU Laws
In the past decades, many laws were made in the EU to change the way consumers interact with technology and the internet. For instance, in 2002, the ePrivacy Directive (ePD) was passed, requiring users to accept being tracked online by accepting cookies. In 2022, a law was passed making USB-C the mandatory charger for all portable devices.
But the law that will now cost Google 2.4 billion is the Digital Markets Act (DMA). On March 6th, 2024, the deadline for complying with the DMA was reached. From this day on, the biggest gatekeepers on the internet had to comply with European law, which is designed to make the internet a more competitive space and limit the power of its biggest players. The law further restricts data collection and continues earlier efforts, such as the Digital Services Act (DSA), which aimed to make data collection on the internet more transparent. Apart from data collection, the DMA should also ensure open messaging communication between different platforms and make it possible to uninstall preloaded applications. Another major aspect of the DMA is the ban on influencing online searches. Breaking this section of the law is what got Google its 2.4 billion fine, as they unfairly favoured their own results over others in Google Shopping.
Any changes in Europe so far?
Yes, cookies are one of the most notable changes, as they now appear on almost every page on the internet. The USB-C obligation is also coming into effect, so many consumers (especially Apple customers) will notice this change. But there are also smaller changes that you might not have consciously noticed. For instance, Google Maps used to pop up while Google searching for a street. This is no longer allowed under the DMA, as it unfairly favours Google’s own product. Now, users will have to specifically type “Google Maps” or use the app. Last year’s ‘pay-or-consent’ model from Meta (Facebook and Instagram) was a direct result of DMA regulation. Since personalized ads are no longer allowed without explicit consent, Meta gives users a choice: a free application with personalized ads or a paid application with non-personalized ads. The European Commission is currently suing Meta for this practice.
But is it better?
I guess that depends on your definition of better. Big tech companies try their hardest to make their apps user friendly so that customers spend more time on their sites and products. More time spend is more adds and more money. However in their quest for maximal user friendliness they also increased the addictiveness and dependency on their products and brands. Trying to fight the attraction of products might be impossible for citizens and exactly a role for governing bodies and regulators .
So yeah, it probably is good that the European Commission fines companies that don’t comply with rules designed to make and keep tech and the internet a more pleasant place for the average individual.
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