European Council approves Digital Markets Act rules

Posted:
in General Discussion
The Digital Markets Act has taken yet another step to becoming adopted by European countries, with the regulations affecting how Apple runs various services gaining final approval from the European Council.




Over a year after being proposed, the Digital Markets Act has been approved by the European Council, a group representing the heads of state or governments of EU member states. With the final approval given by the council, DMA edges ever closer to becoming rules that will then become law across the continent.

The DMA goes after "gatekeepers" of large online platforms, such as Apple's management of the App Store and Messages. The rules aim to make the business environment as fair for all parties, by forcing gatekeepers into various concessions, such as making Apple's Messages platform work with third-party services.

For the App Store, the rules can force Apple to provide more marketing or advertising performance data to developers, allow third-party payment platforms to be used, and to prevent Apple from ranking its own apps above others in relevant App Store searches.

Companies considered to be gatekeepers have to comply with DMA rules within six months. Fines of up to 10% of total worldwide turnover could be imposed onto violators, rising to 20% for repeat offenses.

Systematic failure to comply with the rules can lead to a European Commission market investigation, which can result in "behavioral or structural remedies."

"With the final adoption of the Digital Markets Act, we will finally make large online platforms responsible for their actions. Hereby, the EU will change the online space worldwide," said Deputy Prime Minister for Digitisation and Minister of Regional Development Ivan Bartos. "The gatekeepers that the DMA addresses are omnipresent - we all use their services on a daily basis. However, their power is growing to an extent that negatively affects competition."

After being approved by the Council, DMA has been adopted as a legislative act. It now has to be signed by the European Parliament President and Council President then published in the Official Journal of the European Union. After that, the rules will start to apply six months later.

Read on AppleInsider

Comments

  • Reply 1 of 12
    mobirdmobird Posts: 756member
    Please excuse my lack of understanding when the EU speaks the following:

    "Fines of up to 10% of total worldwide turnover"

    What exactly is "turnover"?

    Are they referring to Gross Sales or Net Sales?

    Usually I would associate "turnover" with personnel tracking, usually a metric used by the HR department in a organization.

    FileMakerFellerwatto_cobra
  • Reply 2 of 12
    jimh2jimh2 Posts: 640member
    It’s bad news for all inventors and patent holders when a government can force you to implement on a competitors platform. Why invent something (iMessage) if the government can just steal from you. This is socialism and why everyone should be against it. It breeds mediocrity. There are plenty of messaging platforms for everyone to have one. 
    aderutterFileMakerFellerwatto_cobra
  • Reply 3 of 12
    rob53rob53 Posts: 3,263member
    Time for a worldwide lawsuit against the EU for hacking systems and products. The EU has no right to sue a non-EU company, especially on non-EU sales. Time for the EU to actually produce something of value instead of going after non-EU companies. 
    watto_cobra
  • Reply 4 of 12

    "With the final adoption of the Digital Markets Act, we will finally make large online platforms responsible for their actions. Hereby, the EU will change the online space worldwide," said Deputy Prime Minister for Digitisation and Minister of Regional Development Ivan Bartos. "The gatekeepers that the DMA addresses are omnipresent - we all use their services on a daily basis. However, their power is growing to an extent that negatively affects competition.”
    That’s interesting, does this mean that the DMA rulings have to be implemented worldwide? Apple is not allowed to create an EU-only iOS that satisfies the DMA?

    jimh2 said:
    It’s bad news for all inventors and patent holders when a government can force you to implement on a competitors platform. Why invent something (iMessage) if the government can just steal from you. This is socialism and why everyone should be against it. It breeds mediocrity. There are plenty of messaging platforms for everyone to have one. 
    There’s no reason people can’t have multiple messaging apps either. An Android friend of mine doesn’t have Messages (obviously) and we text all the time. He also used Messenger, which I don’t have.  Neither of us is complaining about how we communicate with each other or different people. 
    FileMakerFellerwatto_cobra
  • Reply 5 of 12
    avon b7avon b7 Posts: 7,815member
    rob53 said:
    Time for a worldwide lawsuit against the EU for hacking systems and products. The EU has no right to sue a non-EU company, especially on non-EU sales. Time for the EU to actually produce something of value instead of going after non-EU companies. 
    It has every right. The US does the same and I can tell you first hand the chaos that ensued in many businessess trying to comply with something like FATCA.

    The fines are designed to be disuasive. If you don't like the rules you can pull out of the region. 
    muthuk_vanalingamFileMakerFeller
  • Reply 6 of 12
    avon b7avon b7 Posts: 7,815member

    "With the final adoption of the Digital Markets Act, we will finally make large online platforms responsible for their actions. Hereby, the EU will change the online space worldwide," said Deputy Prime Minister for Digitisation and Minister of Regional Development Ivan Bartos. "The gatekeepers that the DMA addresses are omnipresent - we all use their services on a daily basis. However, their power is growing to an extent that negatively affects competition.”
    That’s interesting, does this mean that the DMA rulings have to be implemented worldwide? Apple is not allowed to create an EU-only iOS that satisfies the DMA?

    jimh2 said:
    It’s bad news for all inventors and patent holders when a government can force you to implement on a competitors platform. Why invent something (iMessage) if the government can just steal from you. This is socialism and why everyone should be against it. It breeds mediocrity. There are plenty of messaging platforms for everyone to have one. 
    There’s no reason people can’t have multiple messaging apps either. An Android friend of mine doesn’t have Messages (obviously) and we text all the time. He also used Messenger, which I don’t have.  Neither of us is complaining about how we communicate with each other or different people. 
    EU directives are EU specific but often it makes sense for multinationals to implement compliance measures across their entire product ranges. RoHS would be an example.

    As for DMA, I don't know how far reaching it will be but I doubt it will extend far beyond the EU due to the lobbying influence of the US. 
    edited July 2022 muthuk_vanalingam
  • Reply 7 of 12
    sphericspheric Posts: 2,598member
    rob53 said:
    Time for a worldwide lawsuit against the EU for hacking systems and products. The EU has no right to sue a non-EU company, especially on non-EU sales. Time for the EU to actually produce something of value instead of going after non-EU companies. 
    That's patently bullshit. 

    Any foreign national who commits a crime in Europe gets to be prosecuted by the laws of the country where he committed the crime. This goes for corporations, too. 

    Adding icing to the cake of bullshit is that "suing" is for civil liability cases and has nothing per se to do with violating any laws. Fines are not the same thing as damages. 
    FileMakerFeller
  • Reply 8 of 12
    dasanman69dasanman69 Posts: 13,002member
    jimh2 said:
    It’s bad news for all inventors and patent holders when a government can force you to implement on a competitors platform. Why invent something (iMessage) if the government can just steal from you. This is socialism and why everyone should be against it. It breeds mediocrity. There are plenty of messaging platforms for everyone to have one. 
    Has Apple not stolen things invented by someone else. How many developers lost their livelihoods because Apple baked their app's function into the OS? 
  • Reply 9 of 12
    Apple's Messages platform already works with third-party services, using the SMS protocol.

    If there was sufficient benefit to implementing Messages on all platforms, someone would have paid for it to be done by now (either Apple or one of its competitors). And then there would be a whole range of complaints about how Apple has a monopoly on messaging services and independents have no chance to compete, blah, blah, blah. Meanwhile, all industry players have steadfastly refused to develop a new standard that meets modern requirements (RCS is being pushed by Google, but RCS remains tethered to a phone number - it's not capable enough).

    Too many people value their own ideas well above what the market will pay - and they blame the market for being unwilling to recognise the value rather than themselves for being unrealistic.
    watto_cobra
  • Reply 10 of 12
    jimh2 said:
    It’s bad news for all inventors and patent holders when a government can force you to implement on a competitors platform. Why invent something (iMessage) if the government can just steal from you. This is socialism and why everyone should be against it. It breeds mediocrity. There are plenty of messaging platforms for everyone to have one. 
    Fascist, not socialist.  The EU government isn't seizing Apple and claiming that it owns it.  Instead, it's dictating how Apple operates.
  • Reply 11 of 12
    sphericspheric Posts: 2,598member
    jimh2 said:
    It’s bad news for all inventors and patent holders when a government can force you to implement on a competitors platform. Why invent something (iMessage) if the government can just steal from you. This is socialism and why everyone should be against it. It breeds mediocrity. There are plenty of messaging platforms for everyone to have one. 
    Fascist, not socialist.  The EU government isn't seizing Apple and claiming that it owns it.  Instead, it's dictating how Apple operates.
    Ah yes, because any state that issues laws regulating business is "fascist". 

    Like the United States. Canada. Sweden. Fascist Norway. The Vatican. Greece. New Zealand. 

    No wonder so many Americans are incapable of recognising actual fascism when it's staring right at them from under a MAGA hat. 
    muthuk_vanalingamjony0
  • Reply 12 of 12
    spheric said:
    jimh2 said:
    It’s bad news for all inventors and patent holders when a government can force you to implement on a competitors platform. Why invent something (iMessage) if the government can just steal from you. This is socialism and why everyone should be against it. It breeds mediocrity. There are plenty of messaging platforms for everyone to have one. 
    Fascist, not socialist.  The EU government isn't seizing Apple and claiming that it owns it.  Instead, it's dictating how Apple operates.
    Ah yes, because any state that issues laws regulating business is "fascist". 

    Like the United States. Canada. Sweden. Fascist Norway. The Vatican. Greece. New Zealand.
    Outside of safety and fraud, which these regulations definitely are, correct.  I'm glad someone else sees reality.

    spheric said:

    No wonder so many Americans are incapable of recognising actual fascism when it's staring right at them from under a MAGA hat. 
    The US has been trending fascist since at least WW II, arguably earlier than that.  It's only gotten worse in the last couple of decades.  Won't be long now before it's too late.

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