04 March 2024
Is self-regulation over for big tech?
Apple's €1.8bn fine from the European Commission on Monday is the most recent example of the global push to regulate big tech. Before the fine, European Commission Executive Vice President Margrethe Vestager told the New York Times that: “This is a turning point. Self-regulation is over.”
Apple’s fine was for creating “unfair trading conditions” through App Store rules that prevented Spotify from promoting its subscription offers on its app. But this is just one example of major changes tech companies have been forced to make due to global regulatory action.
Here are some of the other major developments:
🔷 6 March 2024: EU Digital Markets Act (DMA) deadline for designated gatekeepers to comply with pro-competition requirements
Google will change how it displays certain search results
Microsoft will remove default Bing internet search engine from Windows
Apple will give iPhone and iPad users access to other app stores and payment systems
🔷 February 2024: EU Digital Services Act (DSA) enforced, regulating online content
EU users now have new tools to report unlawful content
Google and Meta will not allow advertisers to target EU users based on their ethnicity, political views and sexual orientation
Google will reduce visibility of its own services in search results and allow EU users to limit personal data being shared across services
TikTok and Instagram's EU users can opt out of algorithmic recommendations based on their personal data
Instagram, Snapchat and TikTok's EU users under the age of 18 can no longer see personalised ads
🔷 US FTC and DoJ anti-trust investigations are also promoting competition
Amazon will allow merchants to sell via its Prime subscription service without having to use Amazon’s logistics network
Google will allow more mobile payment options for app developers as part of an agreement with state attorneys general
Apple will make it easier for Android users to interact with its iMessage product in the US
🔷 Australia required platforms like Alphabet and Meta to pay media outlets for content in 2021 (estimated $100 million in payments)
Meta has said it will not renew deals with Australian media companies
🔷 Indonesia: banned e-commerce transactions on social media in 2023
TikTok has closed its online retail service in Indonesia
🔷 Nepal and India have both banned TikTok from operating in their markets
But is this the end of self-regulation? With the combined market value of Microsoft, Meta, Amazon, Apple and Alphabet more than doubling since the end of 2019 (now nearly $10.6 trillion), it seems their dominance continues. But the changes following global regulatory action are undeniable.
This may not be the end of self-regulation for big tech, but (to paraphrase Churchill) it may be the end of the beginning…