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US tech giants face tough new rules as EU countries and lawmakers reach agreement – SABC News

Alphabet’s Google, Amazon, Apple, Meta and Microsoft may need to change their core business practices in Europe as EU countries and EU lawmakers reached agreement on Thursday on landmark rules to limit their powers.

France, which currently holds the rotating EU Council Presidency, said in a tweet that a tentative deal had been reached after eight hours of talks.

EU industry boss Thierry Breton also confirmed the news in a tweet.

Proposed just over a year ago by EU cartel chief Margrethe Vestager in response to the slow pace of competition investigations, the Digital Markets Act (DMA) lays down rules for companies that control data and platform access.

As part of the DMA, the tech giants must make their messaging services interoperable and give business users access to their data.

Business users could promote competing products and services on a platform and transact with customers outside of the platforms.

The rules prohibit companies from favoring their own services over those of the competition or preventing users from removing pre-installed software or apps.

The DMA applies to companies with a market capitalization of €75 billion, €7.5 billion in annual revenue and at least 45 million monthly users.

Businesses face hefty fines of up to 10% of their annual global revenue for violating the rules and up to 20% for repeat violations.

US tech giants face tough new rules as EU countries and lawmakers reach agreement – SABC News

Source link US tech giants face tough new rules as EU countries and lawmakers reach agreement – SABC News

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