Wait… are Big Tech companies finally having to abide by the rules?

Earlier this year, the European Union’s Digital Services Act and Digital Markets Act kicked into gear for a handful of Big Tech giants. The lucky few to receive greater scrutiny included Google owner Alphabet, retailer Amazon, iPhone maker Apple, TikTok owner ByteDance, Facebook owner Meta and computing giant Microsoft.

Introduced to protect consumers in both market fairness and online safety, the companies had ample time to prepare for the changes. Several months down the line, we ran a mid-term report to see how the new rules were faring and, most importantly, if any progress had been made.

At that time, results were mixed, with investigations already opened into Alphabet, Apple, Meta and Amazon for a raft of rule breaking. If the EU’s response felt surprisingly quick, that’s because it was; were Big Tech companies finally getting a taste of their own bullish medicine? And would the EU be committed enough to back this newfound stance up? That’s where we left proceedings last time.

So, what’s the outlook for the latter half of 2024?

Are we witnessing a sea change?

While it’s important not to get ahead of ourselves – whisper it – change could be in the air. Strides have undoubtedly been made; Apple has already been forced to accommodate alternative app stores and Meta has been charged for its controversial pay or consent advertising model.

Better yet, the Digital Markets Act is showing tangible results. In April 2024, Reuters noted that independent browsers had seen a spike in users a mere month after the law came into force; the Cyprus-based Aloha Browser said users in the EU jumped 250% in March, while Norway-based Vivaldi, Germany-based Ecosia and United States-based Brave also saw user numbers jump.

While preliminary investigations into Alphabet, Apple, Meta and Amazon are completed, the final steps are expected to extend into the first part of 2025. If found guilty, the firms are at risk of fines as much as 10% of their global annual turnover, although it’s worth noting that this can be swerved if advertising models are tweaked.

Caution is still advised, however. A report in Euronews earlier this year called the EU’s Digital Markets Act “a double-edged sword” and warned that “the EU risks straying into the territory of a market which penalises success”. Clearly, striking an all-important balance will be critical moving forward.

A global stance

The EU’s new laws aren’t just garnering attention within the bloc; the efforts have been recognised on a global scale. Brazil, India, Japan and South Korea have launched legislation at various stages inspired by the Digital Markets Act framework. Ironically, even the UK has followed the EU’s lead with the Digital Markets, Competition and Consumers Act, which regulates technology companies with strategic market power.

Further afield, both Australia and New Zealand are locked in a tense back and forth with Meta over proposals to make it compulsory for Big Tech companies to pay news publishers for their content. Met with consternation, Meta has already blocked Australian content from its platform and has threatened to do the same with its neighbour.

Perhaps this explains why it feels like there’s been such a sea change; the news cycle is dominated by stories of governments cracking down on Big Tech and these stances are unprecedented. The change in attitudes is welcome, but do governments have the appetite and commitment to see sufficient punishments through?

Cause for optimism or something else at play?

Like it or not, the EU’s tech laws are here to stay. Initial pushback was to be expected but Apple alone is proof that Big Tech can fall in line, if forced to. That can only be a positive, right?

Well, it’s worth considering why Big Tech companies are willing to cede ground right now. With the AI revolution looming large, perhaps these firms have a shiny new toy to guard and fancy forging a new monopoly, while each government’s gaze is focused elsewhere.

But this is a worry for the future. For now, the EU must stick to its task of holding Big Tech companies to account and protecting consumers. It’s been a positive start.