Seven major technology companies such as Amazon, Apple, Google, and Microsoft admit that they are 'gatekeepers' under EU digital market law

On July 4, 2023 local time, large companies in the technology industry such as Alphabet, which owns Google, Amazon, Apple, ByteDance, which owns TikTok, Meta, which owns Facebook and Instagram, Microsoft, Samsung, etc. It acknowledged that it is a 'gatekeeper' in the Digital Market Act (DMA) established by the European Union (EU) to prevent abuse of market power and enable new entrants.

Here are the first 7 potential “Gatekeepers” under the DMA
https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_23_3674

Amazon, Apple, Google, Microsoft, and TikTok identify as big tech “gatekeepers” - The Verge
https://www.theverge.com/2023/7/4/23783790/eu-digital-markets-act-gatekeepers-apple-google-amazon-meta-tiktok

Created by the EU to prevent monopolies in digital markets, the DMA is a new law that has just entered into force on November 1, 2022. DMAs are online intermediaries such as app stores, search engines, social networking services (SNS), messaging services, video sharing platform services, virtual assistants, web browsers, cloud computing services, operating systems (OS), online marketplaces, and advertising services. The service is defined as a 'core platform service', and the company providing this is qualified as a 'gatekeeper'.

The following three criteria for gatekeepers are based on DMA.

1: Scale that affects the domestic market
If a company has a certain annual turnover in the European Economic Area (EEA) ('annual turnover in Europe of at least €7.5 billion (approximately 1.2 trillion yen) in the last three If it has achieved a fair market value of at least 75 billion euros (approximately 12 trillion yen)' and provides core platform services in at least three EU member states.

2: Control of critical gateways from business users to final consumers
If the company provides core platform services to more than 45 million monthly active end users established or based in the EU and more than 10,000 annual active business users established in the EU.

3: Established and permanent position
If the company meets the second criterion in the last three years.

In addition, DMA defines 'what to do' and 'what not to do' by the gatekeeper, and the specific examples are as follows.

◆ What to do
• Allow third parties to interoperate with Gatekeeper's own services in certain circumstances.
• Allow business users to access data generated when using Gatekeeper's platform.
・Provide advertisers and publishers with the tools and information they need to independently verify their own Gatekeeper-hosted ads for businesses advertising on the platform.
- Allowing business users to advertise their offers and conclude contracts with customers outside of Gatekeeper's platform.

◆ Do not do
• Giving a ranking advantage to services or products offered by Gatekeeper itself over similar services or products offered by third parties on Gatekeeper's platform;
- Prevent consumers from linking to companies outside the platform.
・Preventing users from uninstalling pre-installed software or apps even if they so desire.
• Track End Users outside of Gatekeeper's Core Platform Services for the purpose of targeted advertising without valid consent;

Companies that violate this rule can be fined up to 10% of their global turnover, and repeated violations can be fined up to 20%. In addition, the European Commission also explained that in the case of repeated violations, 'it may carry out market investigations and, if necessary, impose behavioral or structural penalties'.

The Digital Markets Act: ensuring fair and open digital markets
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/europe-fit-digital-age/digital-markets-act-ensuring-fair-and-open-digital-markets_en

The EU has set July 3, 2023, local time, as ``the deadline by which a large institutional platform may notify the European Commission that it meets the criteria to qualify as a gatekeeper under the DMA''. .

The EU has announced that the following seven companies have declared that they meet the gatekeeper criteria within this deadline.

・Alphabet
・Amazon
・Apple
・Byte Dance
・Meta
・Microsoft
・Samsung

Going forward, the EU will review submissions from the above seven companies and will designate gatekeepers for specific platform services by September 6, 2023. Companies designated as gatekeepers will be given a six-month grace period to comply with the DMA.

'This will allow consumers to choose from a wider range of services that suit them, which will increase the opportunities to switch providers and benefit from better prices and higher quality of service,' the EU said. and will not prevent innovative companies from reaching new customers.'

Reuters reports that ByteDance has said it meets the criteria for DMA, but disputes its inclusion on the list. On the other hand, Booking.com has notified the EU that it will be on the list in 2024.

US Big Tech says it meets EU gatekeeper status, TikTok criticises label | Reuters
https://www.reuters.com/technology/amazon-google-apple-meta-microsoft-say-they-meet-eu-gatekeeper-status-2023-07-04/