It’s a Thriller! DMA Update for October
Halloween is over and the shops are swapping pumpkins for Christmas trees in their display windows. Already, the end of the year feels within grasp. But in the app economy things are still moving full steam ahead, and this month has been a rocky one for the EU’s Digital Markets Act. Enacted in March this year, the policy was designed to disrupt the unfair advantages enjoyed by the likes of Google, Apple, Meta, Microsoft, Amazon and TikTok. So far, things have worked, but October has nonetheless delivered mixed fortunes for Europe’s flagship legislation.
For starters, the antitrust policy was overshadowed by similar legal wranglings on the other side of the Atlantic, where the US government is cracking down on Google. On the other hand, while there have been signs of improvement within the Europe, some companies are complaining the DMA isn’t going far enough. Moreover, there has also been some significant reporting on the extent to which Big Tech has been attempting to undermine the EU too. So without further ado, let’s get into the nitty gritty.
Google Gets a Fright
The biggest news in October was that Google has come in for some serious flack. Since being branded a “monopolist” in August by the US judge overseeing an antitrust case against the search engine giant, the American Department of Justice is now suggesting that maybe Google should just be broken up. “We have reached a position of success because we have deeply innovated,” protested Google CEO Sundar Pichai. One cannot but appreciate his audacity.
Next, following Epic’s monumental US legal victory over Google last year, a US court has ordered Google to open up its Play Store to third party apps. Unsurprisingly, Google isn’t happy, and has already been pushing back. Nevertheless, many people in the business are celebrating, including Aptoide co-founder Paulo Trezentos, who has written a very interesting blog about his company’s Play Store struggles.
Meanwhile back in Europe, things got a little worse for Google. A study by the travel-tech organization Mirai has revealed a 1 percent drop in Google’s market share in direct hotel bookings since the DMA’s introduction. While the company’s C-suite probably isn’t sweating too much, it’s an indication that the DMA is doing its job. Thus, although a lot of the digital antitrust action in the last month has been taking place in the US, the outlook in the EU is overall positive—especially when you consider the rise of app developers, such as Supercell, that have flourished as a result of the legislation.
Spooky Season Continues in Europe
Outside of Google, the DMA offered a mixed bag of treats in October. The most eye-catching headline in the last month was that Apple finally bowed to EU pressure: in the beta version of iOS 18, users can not only delete Photos, Safari and Messages, but even the App Store too. In turn, this will give European iPhone users greater choice over which apps they use.
However, it’s not all been plain sailing. Sadly, the browser companies Vivaldi, Waterfox and Wavebox have written to the EU, urging it to take action against the unfair advantages they allege Microsoft’s browser Edge enjoys. The outcome of this is obviously still TBC, but if smaller developers are worried, then the EU should listen.
Lastly, Elon Musk. Are you a fan or a hater? Well, Europe can’t decide either. In October, Musk’s X platform was deemed not “important” enough to be directly subject to the DMA’s rules. At the same time, EU regulators have voiced their intention to hit the Tesla boss with a $1 billion fine for allegedly breaching the DMA’s sister policy, the Digital Service Act. To quote Forrest Gump, life really is like a box of chocolates. And with the DMA, sometimes you really do never know what you are going to get next.
Opinion: It’s Time to Get Off Big Tech’s Ghost Train
Normally, I like to end these blogs by looking at some of the interesting opinions I’ve encountered. This month, however, I’d like to focus on the facts, especially a story that gets to the heart of why digital antitrust legislation is necessary in Europe and elsewhere.
As multiple outlets reported last week, Google, Apple, Meta and Microsoft have allegedly been using backdoors to influence the DMA itself. According to a study by three NGOs, one in five attendees at EU workshops related to DMA policy had undisclosed affiliations with Apple, Google, Amazon, Meta, Microsoft and/or TikTok. If true, the ramifications for the EU and Big Tech are huge. On the one hand, it shows that the EU’s policy security is weak. On the other, it’s a clear indication of the lengths these companies will go to in order to preserve their monopolies.
As such, I’ve been encouraged by the attitude of the EU’s presumptive incoming competition chief, Teresa Ribera. “I will push for a vigorous enforcement of the DMA, shaping the Commission policy concerning this important new instrument, in order to deliver concrete results for European business and end users,” she recently remarked. I couldn’t agree more. And so, while some of the DMA’s critics continue to debate its scope and legitimacy, these individuals need to remind themselves that the playing field simply isn’t level.
Thanks for reading! I’ll be back next month with a festive roundup of all things DMA in 2024.
—Robert.