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| EU Digital Markets Act: Apple & Microsoft Exemptions |
The European Union has recently implemented sweeping regulations targeting major technology companies, including Meta, Google, Amazon, Apple, and Microsoft, in an effort to address anti-competitive behavior. The Digital Markets Act (DMA), which came into effect on March 1st, 2023, aims to foster fairer digital markets by regulating tech giants referred to as 'gatekeepers'.
Key Provisions of the DMA:
- The DMA seeks to address anti-competitive behavior by requiring major tech companies to open their platforms to promote competition in digital markets.
- It targets tech companies deemed as 'gatekeepers' and imposes obligations such as interoperability and data sharing to ensure fair competition.
Exemptions for Apple and Microsoft Offerings:
- Following investigations, regulators determined that certain services, including Apple's iMessage and Microsoft's Bing search engine, along with Microsoft Edge browser and Microsoft Advertising, do not meet the criteria of 'gatekeeper' services.
- As a result, these services were exempted from the interoperability and data sharing obligations under the DMA.
Rationale for Exemptions:
- Regulators based their decision on thorough assessments of the companies' arguments and inputs from stakeholders.
- For instance, iMessage was considered exempt due to the ease of switching to alternative chat apps, indicating a lack of 'gatekeeper' control. Bing and Edge were seen as competitors to Google's dominance in search and browsers.
Tech Companies' Response:
- Apple and Microsoft welcomed the decision, citing user preferences and competition in their respective segments.
- However, oversight of other services such as Apple's App Store, iOS, Safari, and Microsoft's LinkedIn and Windows will continue under the DMA.
Continued Regulatory Scrutiny:
- Despite the exemptions, Apple and Microsoft are still subject to EU oversight to ensure compliance with DMA regulations.
- The Coalition for Open Digital Ecosystems (CODE), representing companies like Google and Meta Platforms, disagreed with the Commission's decision to exempt certain services, including iMessage.