The European Commission has designated Google as a gatekeeper under the new Digital Markets Act (DMA), which aims to increase competition in the tech industry. The legislation will come into effect in March 2024.
Google is among several big tech firms like Apple, Amazon, Meta, Microsoft, and ByteDance that must comply with the rules within six months.
The DMA seeks to limit the power of these companies in digital markets where they hold an entrenched position.
In a statement, Google said it has “always believed in offering people and businesses choice and control” when using its services.
What Does This Mean?
To adhere to the DMA, Google must change products like search, maps, and its app store on Android devices.
The company plans to consult experts to balance meeting the new requirements while providing a good user experience. It will focus on giving consumers more options to switch between platforms and better tools to manage their data.
DMA’s Broader Impact On Big Tech
The SMA represents one of the world’s most stringent pieces of legislation targeting the market dominance of top technology companies globally.
It aims to achieve the following objectives:
- Give people more choices over their default apps
- Allow alternative app stores
- Force messaging apps to be interoperable
- Ban preferential treatment for a company’s services in rankings
Further, companies will need consent for targeted advertising, and business customers will get more transparency on ad data.