One year in, EU turning up heat in big tech fight

BRUSSELS

If 2024 already looks like an annus horribilis for big tech in the EU, the months ahead could prove a winter of discontent as the bloc wields a fortified new legal armoury to bring online titans to heel.

Since August 2023, the world's largest digital platforms have faced the toughest tech regulations in the European Union, with enforcement showing no signs of slowing.

Brussels achieved its first major victory by compelling TikTok to permanently remove an "addictive" feature from a spinoff app in August, marking a year since content moderation rules under the bloc's Digital Services Act (DSA) began to apply.

This followed a week in which Brussels issued back-to-back decisions against Apple, Meta, and Microsoft. Officials indicate that more actions are on the horizon before 2024 concludes.

The EU's actions are primarily enabled by the DSA, which mandates companies to monitor online content, and the Digital Markets Act (DMA), which outlines permissible business practices for big tech.

Since the DMA's implementation in March, the EU has notably pressured Apple to back down in a dispute with Fortnite maker Epic Games over app store policies.

"The European Commission is doing the job; it is implementing the DMA with limited resources and within a short timeframe compared to lengthy competition cases," said EU lawmaker Stephanie Yon-Courtin, a digital issues specialist.

Jan Penfrat, senior policy advisor at online rights group EDRi, noted early changes: the DSA gives users the "right to complain" when content is removed or accounts are suspended, and the DMA allows users to choose their browsers and search engines through selection screens.

"This is just the beginning," Penfrat stated. He added that EDRi and other groups compiled a list in July of areas where Apple is not complying with the DMA. "We expect the Commission to address those issues in time," he told AFP.

 High-profile Tests 

Apple remains a significant challenge for the EU, being the DMA’s chief critic and claiming the regulation risks user security. The company became the first to face formal accusations in June for violating DMA rules and faces hefty fines unless it rectifies the situation.

On Aug. 8, Apple announced changes to the App Store to comply with the DMA, although smaller tech firms within the Coalition for App Fairness criticized them as "confusing." The EU is evaluating Apple's compliance efforts.

It remains uncertain whether Apple will align with the DMA without significant EU pressure, but one thing is clear: Brussels is prepared for confrontation.

Another high-profile test will involve X (formerly Twitter), with regulators expected to decide by September whether the platform must adhere to the DMA.

The DSA’s regulations on curbing disinformation and hate speech have already prompted a significant clash between X’s owner Elon Musk and the EU’s digital chief Thierry Breton. The threat of fines or even an outright EU ban looms if violations continue.

 Full Speed 

EU competition chief Margrethe Vestager stated that Brussels is operating at "full speed." The objective is to reduce the duration of competition investigations, which typically took years, to a maximum of 12 months under the DMA.

However, companies can challenge fines or decisions in EU courts, potentially leading to protracted legal battles. Apple announced in June that it would delay rolling out new AI features in Europe due to "regulatory uncertainties."

Penfrat accused Apple of fearmongering by attributing delays in feature rollouts to EU regulations to pressure the Commission not to enforce the DMA too strictly.

 Pressure Building 

Aside from Apple, big tech remains dissatisfied with actions taken under the DMA. "Instead of announcing possible punitive measures with political posturing, these probes should encourage a dialogue between the European Commission and the companies concerned," stated Daniel Friedlaender, head of the tech lobby group CCIA Europe.

Brussels, undeterred, is intensifying its scrutiny. In addition to potential new DMA actions against X, the EU may soon classify Telegram as one of the "very large" platforms facing the DSA's strictest rules.

Brussels aims to leave no corner of the digital sphere untouched. This includes the critical area of artificial intelligence, with the EU currently investigating partnerships between tech giants and generative AI developers, such as Microsoft’s $13 billion collaboration with OpenAI, the maker of ChatGPT.