The EU has been negotiating on the Digital Markets Act (DMA) since 15 December 2020. Recently, the European Parliament approved the law. Some parts of the DMA are closely related to app stores, especially Google and Apple.
The EU aims to make the digital industry more fair and competitive with the DMA. In this context, the powers of the App Store and Google Play currently dominate the industry are restricted. The law acts as a “gatekeeper” to prevent the biggest digital companies from becoming a monopoly.
When we buy a mobile device, applications and app stores that are already installed and cannot be uninstalled can now be removed. Users will be able to disable payment methods and similar services. Companies will not be able to compel users to use any application or service within the scope of the clauses specified in the DMA. Complaint avenues will be expanded, users will be protected from illegal content, and reporting processes will be improved.
On the other hand, the powers of app store owners on specific issues will be narrowed down, and some of these powers will be given to app and game developers. Developers will have more say over the products they release in app stores. Decisions will be implemented throughout the EU and legally binding for foreign companies headquartered in these countries.
European Commissioner for Competition Margrethe Vestager says:
“Big platforms will have to refrain from promoting their own interests, share their data with other businesses, enable more app stores. Because with size comes responsibility – as a big platform, there are things you must do and things you cannot do.”
The UK, which left the EU in 2020, is not covered by the DMA. On the other hand, the UK is preparing to make similar regulations to the DMA. Last June, studies were started on the subject in the country, and some investigations were carried out.
Monopoly lawsuits and investigations against Google and Apple are also being carried out in some European countries, especially Germany. It seems that DMA will provide relief from the unrest in the region regarding the issue for a while.
DMA was perceived by many as a new guarantee of freedom in the digital space. The law’s actual implementation is estimated to begin in the autumn of 2022. You can find the changes and the final version of the main text of the DMA in the consolidated text officially published by the EU Parliament.
Mobidictum also reached Şekip Can Gökalp, Core Contributor, Strategy, of Infinite Arcade, and asked for his expert opinion:
“It’s significant to see a European Union ruling that means Apple & Google can’t easily de-platform or exclude anyone who doesn’t align with their best interests. For the web3 community, this is another strong validation that the world is moving in the right direction where decentralization and immutable ownership will be the norm, as opposed to the status quo, where everything is effectively owned and operated by a few established firms. Perhaps, this will eventually drive Apple and Google – which effectively form a duopoly in the current market – to ease their platform fees from 15-30% to something in the single digits.
“This ruling theoretically opens the door for new and innovative ways for the app store economy to operate with new app distribution opportunities outside of the Apple and Google app stores. It should also facilitate more diverse options for in-app payments and economies. And yet, as we’ve seen previously, encouraging legislation doesn’t always translate into decisive action. Realistically, it will take some time for governments and companies to devise a plan for how change actually occurs, and proactive enforcement by the EU to drive it. Until then, it’s business as usual.”
