The New Markets Act (DMA) is a law.
The New Markets Act (DMA) is a law.
The first inquiry under the new Digital
Markets Act (DMA) digital law was announced by the European Union (EU) and
included Apple, Alphabet, and Meta. The goal of the investigations is to find
out if these tech behemoths have broken any laws related to the Digital Market
Authority (DMA), which aims to control the actions of big tech corporations and
encourage fair competition in the market.
Examinations of Alphabet and Apple
The first two probes target Apple's and Alphabet's anti-steering
policies in particular. Tech companies are not allowed by the DMA to stop
companies from telling their consumers about less expensive options for their
goods or services that are available outside of an app store. Margrethe
Vestager, the EU's competition commissioner, claimed that because Apple and
Alphabet are still charging various recurring fees and limiting steering, their
implementation of the DMA regulations on anti-steering looks to be against the
letter of the law.
Apple's Adherence to DMA Requirements
The final inquiry looks into whether Apple met with its DMA duties
to make sure that consumers may quickly alter default settings and uninstall
programs from iOS. The investigation also looks at whether Apple actively
provides customers with options to alter the iOS default services, including
the web browser or search engine. The European Commission has raised concern
that customers may not be able to fully exercise their choice of services
within the Apple ecosystem as a result of Apple's actions, notably the design
of the web browser option screen.
The Search Result Display on Alphabet
Targeting Alphabet, the fourth examination looks into whether the
company's display of Google search results could cause users to favor Google
over competing products and services. One example of this is Google Shopping.
According to Alphabet, in order to comply with the DMA, they have made
significant modifications to the way their services function in Europe. They
plan to keep defending this strategy in the months to come.
The Pay and Consent Model of Meta
The subject of the fifth and last inquiry is Meta and its
purported "pay and consent" model. The commission is investigating
whether it is against the DMA to offer a subscription service free of
advertisements or to need users to agree to terms and conditions in order to
access the free service. The European Commission is worried that consumers who
refuse to consent may not have a viable alternative to choose from under Meta's
model, which would negate the goal of stopping gatekeepers from collecting
personal data.
Possible Penalties and Repercussions
The European Commission has the authority to punish companies up
to 10% of their global sales if they are found to have violated the DMA. If an
infraction occurs more than once, the fines might go up to 20%. The commission
has stated that while it hopes to wrap up its investigations in a year, the DMA
does not set a strict timetable for the investigation's duration.
Crucial Information for Exams
The European Commission proposed the Digital
Markets Act (DMA) in December 2020, and it went into effect on November 1, 2022.
The DMA seeks to stop big platforms from abusing their market
dominance and to level the playing field for companies in the digital industry.
Large digital companies that have to abide by EU law are referred to as
"gatekeepers" in the DMA.
In addition, the European Commission is researching Apple's new pricing model and other terms and conditions for third-party app stores, in an effort to determine whether Amazon is favoring its own brand products over competitors on its online marketplace.
Quick Links
· TNPSC GOVERNMENT EXAMS
· · TNPSC GROUP I Training institute
· · TNPSC GROUP II Training institute
· · TNPSC GROUP IIA Training institute
· · TNPSC GROUP 4 Training institute
· RRB
· · Railway Recruitment Board JE
· · Railway Recruitment Board NTPC
· BANK
· · IBPS PO bank coaching centre
· · IBPS SO bank coaching centre
· · IBPS CLERK bank coaching centre
· · IBPS RRB ASSISTANT job coaching centre
· · IBPS RRB probationary office exams
· UPSC
· · Civil Service coaching centre
· · IAS exam coaching centre in Chennai
· SSC
· POLICE EXAM
· · CONSTABLE Exam coaching centre
· · SUB-INSPECTOR Exam coaching centre
· TNTET