On Thursday, Negotiators from the European Parliament and EU member states approved major legislation to limit the market dominance of major US tech giants such as Google, Meta, Amazon and Apple.
At a meeting in Brussels, lawmakers compiled a long list of do's and don'ts, highlighting the world's most prominent web giants, such as the internet's "gatekeepers," who are subject to special rules.
Coming through the bloc's legislative process, the Digital Markets Act (DMA) aims to protect consumers and give competitors a better chance of defending against the world's mighty tech giants.
What is Digital Markets Act?
The DMA intends to ensure a higher degree of competition in the European Digital Markets, by preventing large companies from abusing their market power and by allowing new players to enter the market.
It establishes a list of obligations for designated Gatekeepers and in case of non-compliance, there will be enforced sanctions mechanisms, including fines of up to 10% of the worldwide turnover.
EU passed DMA
"The agreement ushers in a new era of tech regulation worldwide," said German MEP Andreas Schwab, who led the negotiations for the European Parliament.
"The Digital Markets Act puts an end to the ever-increasing dominance of Big Tech companies," he added.
Once implemented, the law will give Brussels unprecedented power to scrutinize the giants' decisions, especially when they issue a chequebook to buy promising start-ups.
"The gatekeepers -- they now have to take responsibility," said the EU's competition supremo Margrethe Vestager.
"A number of things they can do, a number of things they can't do, and that of course gives everyone a fair chance," she added.
The law contains about 20 rules, many of which focus on major tech practices that run counter to the bloc's competition rules, but Brussels has struggled to enforce them.
Google is being urged to offer Android smartphone users an alternative to its search engine, Google Maps app or Chrome browser.
In a statement, Apple swiftly expressed remorse over the law, saying it was "concerned that some provisions of the DMA will create unnecessary privacy and security vulnerabilities for our users".
France, which holds the EU presidency and negotiated on behalf of the bloc's 27 member states, said the law would deliver "concrete impacts on the lives of European citizens".
"We are talking about the goods you buy online, the smartphone you use every day, and the services you use every day," said France's digital affairs minister, Cedric O.
(Inputs from various outlets)