Digital Markets Act Takes Effect, Bringing Changes for European Users and Tech CompaniesEU Competition Head Vows to Take Strong Action Against Tech Giants for Online Behavior

The European Union is ready to utilize all its resources to compel major technology companies to modify their actions online, the head of the bloc's competition division declared on Wednesday, just before a comprehensive new legislation takes effect.

In an exclusive interview with AFP, Margrethe Vestager stated that she does not anticipate immediate compliance with the groundbreaking Digital Markets Act (DMA), but that Brussels will not hesitate to take more severe measures if necessary. The DMA will require six "gatekeeper" corporations - Alphabet's Google, Amazon, Apple, ByteDance (parent company of TikTok), Meta, and Microsoft - to adhere to a set of regulations starting Thursday.

Users in Europe can anticipate a variety of modifications, including selection screens on their devices that offer more options for web browsers and search engines. The new law grants the European Commission, the EU's influential antitrust regulator, the authority to impose higher fines, and even break up companies if needed.

The commissioner of competition referred to a series of cases pursued against tech companies since 2014 to demonstrate that Brussels is serious about this matter. Most recently, the EU executive imposed a fine of 1.8 billion euros ($1.9 billion) on Apple on Monday for restricting users' access to alternative music streaming subscriptions.

However, she clarified that the goal is not to split up companies or impose hefty penalties, but rather to ensure compliance. Vestager pointed out that the commission has access to not only the new law but also all the antitrust measures used in previous individual cases against companies.

Ultimately, the new regulations aim to provide users with more choices, according to Vestager. With all eyes on the developments after Thursday, a major question is how the rules will affect app stores. Apple has promised that its customers will be able to download other application stores, but some app developers believe that the changes are too complex to implement in practice. Apple has been one of the most outspoken critics of the DMA, and has even filed legal challenges against certain aspects of the law. ByteDance and Meta are also challenging the EU in court.

Vestager declined to comment on the controversial changes made by Apple or the legal challenges. In addition to the DMA, the commission is casting a wide net across the digital landscape. Last month, Microsoft announced a partnership with French startup Mistral AI, with a 15-million-euro investment. The commission stated that it will investigate this agreement as part of its inquiry into agreements between major players in the digital market and generative AI developers.

Microsoft has invested billions in US-based OpenAI, known for its ChatGPT technology, which the EU is currently investigating as a potential disguised merger.

Vestager did not comment on the investigation but seemed optimistic about competition concerns regarding the Microsoft-Mistral partnership. It is expected that Vestager will leave her position after the European elections in June, but she did not reveal her future plans.

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