Earlier today, lawmakers in the European Union (EU) provisionally agreed upon a new law called the Digital Markets Act (DMA) that primarily targets Big Tech enterprises, including Apple and Google. Both companies have since responded to the drafted legislation, saying it would severely restrict the innovation and security that their products offer.
How Does the DMA Affect Apple?
For the uninitiated, the DMA is set to bring sweeping changes to the digital industry in the EU with the broad objective of making the marketplace fairer and more competitive. Under the current DMA proposal, Apple would need to allow third-party payment options on the App Store. The company has already racked up a 45 million euro fine in the Netherlands, fighting this change. Its legal battle against Fortnite developer Epic Games also revolved around this issue.
The DMA could also completely change how iMessage operates and Apple could be compelled to allow app sideloading as well. It would also have to allow uninstallation of pre-installed apps such as Safi in favor of third-party alternatives. Other changes proposed in the DMA include giving developers fair access to all functions of the iPhone, access to marketing and ad performance data, ranking all products fairly on the App Store, and prohibiting the use of private data for another service.
Apple and Google Respond
The Cupertino giant has since responded to the EU’s proposal. ABC News reports that Apple believes the DMA poses security risks. A spokesperson for the company reportedly said the legislation would “create unnecessary privacy and security vulnerabilities for our users” while other parts of the DMA “will prohibit us from charging for intellectual property in which we invest a great deal.”
Google’s response to the legislation draft had a similar tone. The search engine company says it supports “many of the DMA’s ambitions around consumer choice and interoperability.” However, Google adds that it is concerned “some of the rules could reduce innovation and the choice available to Europeans.”
Along the sidelines, Amazon could be affected by some of the DMA’s provisions as well. The e-commerce marketplace said it it reviewing the DMA draft and possible implications for its customers in Europe.
Do you believe Apple and Google are right in their opposition to the DMA? Tell us in the comments section below.[Via ABC News]