US Firms Under EU Tech Regulation Rules Radar

European Commissioner Margrethe Vestager speaking about EU Tech Regulation Rules
Credit: Francisco Seco/AP

LONDON , (Parliament Politics Magazine) – European authorities’ have used EU Tech Regulation Rules to preserve citizens’ internet data privacy have been ongoing for many years. American politicians have been unable to keep up with them. They may soon be following Europe’s example again, reining down leading internet platforms’ anti-competitive behaviour and content practices.

The European Union completed the Digital Markets Act (DMA) on Thursday, and it aims to prevent the world’s most powerful digital firms from stifling competition. This year, the European Union is expected to go on with a new, far-reaching effort to rein in the powers of the major digital giants by introducing the Digital Services Act (DSA).

New EU Rules Regulating US Tech Giants

The European Union members and EU parliamentarians have backed antitrust head Margrethe Vestager’s plan, the Digital Markets Act (DMA), to limit the influence of internet companies via legislation rather than prolonged antitrust probes.

The plans would produce the most comprehensive Internet privacy restrictions, surpassing even the EU’s massive General Data Protection Regulation (GDPR).

New legislation on digital competition and content moderation has gained bipartisan support in Congress but attempts to mirror the EU’s privacy measures have stalled in Washington for many years. Several laws have been introduced to reflect the most severe limitations the EU is about to implement.

The Digital Markets Act (DMA)

The Digital Markets Act (DMA) is a new EU legislation governing online marketplaces. It is one of two key EU platforms law measures.

New requirements and limits for big digital corporations like Amazon, Google, Apple, and Facebook under the EU’s Digital Markets Act. Big platforms must make their services compatible with rivals’ offerings and bar digital giants from providing preferential treatment to their products.

The law, which is slated to take effect in October, may upend global IT revenues and the supremacy of firms that built large enterprises based on walled gardens.

The DMA prohibits Google, an Alphabet company, from favouring its services over competitors.

It’s possible that Apple, which has warned about viruses and hackers hijacking the iPhone, will have to consider opening its App Store for consumers to download software from other applications or the internet.

The Digital Service Act (DSA)

The Digital Services Act (DSA) is among two significant parts of EU law directed at such platforms in the UK and the European Union (EU). To address issues like as unlawful material, open advertising, and misinformation, the European Commission has put out a proposed law.

It would also oblige significant corporations to give up their platforms to investigators. Furthermore, reveal knowledge about the techniques used in their products. And put stricter controls on how they may target people with digital adverts under the Digital Services Act.

Comparing US and EU Tech Reforms

As an activist group on the political left argued in comparing European and U.S. tech reforms, Accountable Tech asserted the European Union’s upcoming law. The statement claimed it “reads like a budget bill published by top American legislators”. Because of its similarity to numerous proposals the United States government put forward.

According to Technology 202, “important US lawmakers have proposed similar projects. “They mirror different parts of the DMA and DSA, “several of which have bipartisan support.”

U.S. senators have sponsored many proposals to curtail corporate preferences for their goods. At the same time, enforcing app store transparency requirements, limiting targeted advertising on the internet, and other EU restrictions.

Big Tech Regulation Debate from the US

In some respects, many of the more extreme measures proposed by Congress go farther than the European Union laws. But they have not yet gained substantial momentum in Congress.

Since the EU is anticipated to adopt many of the same amendments as Congress. Congress may fall behind its European counterparts once again when formulating guidelines for the Internet.

However, according to Accountable Tech co-founder, If US authorities do nothing, the digital economy’s rules will develop without them.

The Impact of DMA on the Metaverse 

It is believed that DMA is here to stay and will soon be replicated globally. According to a Professor at Queen Mary University, the regulatory straitjacket will tighten internationally. The DMA in place will restrict the giant tech company’s movements.

If successful, the DMA will pressure gatekeepers’ monopoly rents, driving them to pursue longer-term innovation goals. In addition to app stores and google searches, the DMA covers online advertisements, cloud, browsers and VAs.

However, big shot companies like Apple and Google, with their army of attorneys, may also avoid the full effect of the DMA. They have raised concerns about the Commission’s ability to enforce the new EU Tech Regulation Rules.

They argue it might jeopardise consumers’ privacy and security, stifle innovation, and limit consumer choice. However, the Officials think the DMA is just the beginning of ensuring fair play by digital companies.

Beth Malcolm

Beth Malcolm is Scottish based Journalist at Heriot-Watt University studying French and British Sign Language. She is originally from the north west of England but is living in Edinburgh to complete her studies.