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Big changes for Apple, Google and other tech giants: Europe's sweeping law goes into effect today

·2 mins

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Europeans using major tech platforms woke to a new reality as a landmark law imposed tough new competition rules on the companies, changing European Union citizens’ experience with phones, apps, browsers and more. The new EU regulations force sweeping changes on some of the world’s most widely used tech products, including app stores, search engines, messaging platforms, and social media giants. These changes mark a turning point in a global effort to regulate tech giants and protect consumer interests. The broad obligations apply only to the EU, potentially leaving users in other markets longing for similar features. Notable changes include Apple allowing EU users to download iPhone apps via third-party app stores, and Google altering search results to favor independent comparison and travel sites. The DMA, a 2022 law, requires dominant online platforms to give users more choices and rivals more opportunities to compete. The law affects and regulates companies like Amazon, Apple, Google, Meta, Microsoft, and ByteDance. Violators could face stiff penalties, including fines of up to 10% of global revenue. Europe’s new competition law draws contrasts to the United States, where proposals to regulate the tech industry have struggled. The law aims to give consumers more control over how tech giants use their personal information, allowing them to opt out of data-sharing among apps owned by the same company. The DMA promises to lower prices for Europeans by forcing platforms to open up and compete on a more level playing field. The law has been met with opposition from some tech companies warning of unintended consequences. As companies begin to comply with the DMA, concerns have been raised about potential consumer scare tactics or “dark patterns” used to nudge users into sharing more data or making choices that benefit companies. The European Commission has asked Apple to explain its actions under the DMA and is evaluating whether they comply with other EU rules. Thursday’s deadline is the final opportunity for gatekeeper companies to submit detailed plans to the commission, indicating how they will comply with the DMA. Enforcement of the law will be proportionate and unbiased, taking into account the differences between gatekeepers and the actual functioning of their services.