BRUSSELS
If 2024 already looks like an “annus horribilis” for the EU’s big tech companies, the coming months could become a “winter of discontent” as the bloc tries to bring the online giants to their knees with a strengthened new legal tool.
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Since August 2023, the world’s largest digital platforms have faced the European Union’s strictest technology regulations, with no slowdown in sight.
Brussels scored its first major victory in August, when it forced TikTok to permanently remove an “addictive” feature from a spin-off app. A year later, content moderation rules under the bloc’s Digital Services Act (DSA) came into force there.
This comes after Brussels took successive decisions against Apple, Meta and Microsoft during the week, with officials suggesting that further measures are on the horizon before the end of 2024.
The EU’s measures are made possible primarily by the DSA, which requires companies to monitor online content, and the Digital Markets Act (DMA), which outlines the permissible business practices of major technology companies.
Since the implementation of the DMA in March, the EU has notably pressured Apple to give in to a dispute with Fortnite maker Epic Games over App Store policies.
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“The European Commission is doing its job; it is implementing the DMA with limited resources and within a short timeframe compared to lengthy competition cases,” said MEP Stephanie Yon-Courtin, an expert on digital issues.
Jan Penfrat, senior policy adviser at online rights group EDRi, pointed to initial changes: the DSA gives users the “right to complain” when content is removed or accounts blocked, and the DMA allows users to choose their browsers and search engines via choice screens.
“This is just the beginning,” Penfrat said. He added that EDRi and other groups had compiled a list of areas where Apple was not complying with the DMA in July. “We expect the Commission to address these issues in a timely manner,” he told AFP.
Sensational tests
Apple remains a major challenge for the EU, as the company is the main critic of the DMA, claiming that the regulation puts users’ security at risk. The company was the first to be formally charged with violating DMA rules in June and faces heavy fines if it does not remedy the situation.
On August 8, Apple announced changes to the App Store to comply with the DMA, despite criticism from smaller tech companies within the Coalition for App Fairness as “confusing.” The EU is evaluating Apple’s efforts to comply with the DMA.
It remains uncertain whether Apple will join the DMA without significant pressure from the EU, but one thing is clear: Brussels is prepared for a confrontation.
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Another high-profile test concerns X (formerly Twitter). Regulators are expected to decide by September whether the platform must comply with the DMA.
The DSA rules to curb disinformation and hate speech have already led to a significant conflict between X owner Elon Musk and EU digital chief Thierry Breton. Persistent violations could result in fines or even a complete EU ban.
Full throttle
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EU Competition Commissioner Margrethe Vestager said Brussels was working “at full speed” to reduce the duration of competition investigations, which normally take years, to a maximum of 12 months under the DMA.
However, companies can challenge fines or decisions in EU courts, potentially leading to lengthy legal battles. Apple announced in June that it would delay the rollout of new AI features in Europe due to “regulatory uncertainty.”
Penfrat accused Apple of scaremongering by blaming delays in rolling out new features on EU regulations in an attempt to pressure the Commission not to enforce the DMA too strictly.
Pressure build-up
Apart from Apple, major tech companies remain dissatisfied with the measures taken under the DMA. “Instead of announcing possible punitive measures with political posturing, these investigations should promote a dialogue between the European Commission and the companies concerned,” said Daniel Friedlaender, chairman of the tech lobby group CCIA Europe.
Brussels is undeterred and is tightening its controls. In addition to possible new DMA measures against X, the EU may soon classify Telegram as one of the “very large” platforms subject to the strictest rules of the DSA.
Brussels wants to leave no corner of the digital sphere untouched. This includes the important area of artificial intelligence. The EU is currently examining partnerships between technology giants and developers of generative AI, such as the $13 billion collaboration between Microsoft and OpenAI, the maker of ChatGPT.
