Big tech companies face criticism for failing to comply with EU's antitrust law

The European Union has been a bit of a headache for big tech companies lately. Wonder why? Well, the Digital Markets Act (DMA) has something to do with it. DMA, passed by the EU in 2022, is a significant piece of legislation aiming to foster a fairer and more competitive digital marketplace.

The DMA pinpoints major online platforms with gatekeeper status, signifying their substantial influence on the internal market and dominant intermediation position. These gatekeepers face a set of obligations and prohibitions crafted to curb potential abuses of market power and ensure a competitive environment.

Now, per CNBC's report (via Apple Insider), a coalition of big technology and media companies has penned an open letter, alleging that gatekeepers are not adequately bringing their operations in line with the upcoming regulations on digital competition imposed by the EU.

Who are these gatekeepers, you may wonder? Apple, Amazon, Meta, Microsoft, Google, and TikTok’s owner ByteDance. Yes, you probably know all of them. The companies that signed the open letter argue that these major tech players have not adequately collaborated with them and others in the industry.

A group of 24 companies, including names like Schibsted, Ecosia, Qwant, Element, and ProtonVPN put their names on the letter. They pointed out that the gatekeepers “have either failed to engage in a dialogue with third parties or have presented solutions falling short of compliance with the DMA.”

They also mentioned that both businesses and consumers are “kept in the dark” about what's coming post March 7, 2024. All six gatekeepers are required to bring their operations in line with the DMA by then.

The letter, signed by representatives of numerous businesses impacted by the DMA, calls on the gatekeepers to promptly initiate constructive dialogues with business users and other stakeholders, including business and consumer associations. The aim is to swiftly advance progress on proposed compliance solutions.

The signatories further urge the European Commission and the European Parliament to “use all within their power to ensure that the gatekeepers” comply with both the literal requirements and the underlying principles of the DMA.

The big tech gatekeepers have to do things like making their messaging apps compatible with rival ones or letting users pick which apps come already on their gadgets. Take Apple, for example—the company needs to give the nod to alternative app stores, which might lead to Apple splitting its App Store into two.