As 2024 unfolds, big tech companies face mounting challenges in the European Union, with the bloc intensifying its enforcement of new regulations. Since August 2023, the EU has implemented some of the strictest tech regulations globally, and there are no signs of this momentum slowing down.
In August, the EU achieved a significant victory by compelling TikTok to permanently eliminate an “addictive” feature from its European app—a milestone under the Digital Services Act (DSA), which began affecting platforms a year ago. This followed a series of regulatory actions in the summer, targeting tech giants Apple, Meta, and Microsoft, with more expected by the end of the year.
The DSA and its counterpart, the Digital Markets Act (DMA), are central to these efforts. The DSA mandates companies to manage online content, while the DMA imposes stringent rules on big tech operations. Since the DMA’s enforcement began in March, the EU has notably pressured Apple to relent in a dispute with Epic Games over app store policies.
EU lawmaker Stephanie Yon-Courtin praised the European Commission for its rapid implementation of the DMA despite limited resources. Jan Penfrat from the online rights group EDRi highlighted visible changes, such as user rights to challenge content removal and the ability to choose browsers and search engines.
Apple, the most vocal critic of the DMA, has faced formal accusations of non-compliance and risks significant fines if it fails to meet the regulations. While Apple has announced changes to its App Store, there is skepticism about whether these adjustments will satisfy EU demands.
X (formerly Twitter) also faces scrutiny, with regulators set to decide if the platform must adhere to the DMA. Tensions between X’s owner Elon Musk and the EU’s digital chief, Thierry Breton, underscore the potential for substantial fines or an EU ban if violations continue.
EU competition chief Margrethe Vestager has committed to expediting investigations, aiming to limit their duration to a maximum of 12 months. However, companies can appeal decisions in EU courts, potentially leading to prolonged legal disputes. Additionally, Apple has delayed the rollout of new AI features in Europe, citing “regulatory uncertainties.”
Despite criticisms from tech lobbyists for perceived political posturing, the EU remains resolute in its regulatory approach. Upcoming decisions may extend DMA restrictions to platforms like X and potentially Telegram, and Brussels is also scrutinizing major AI deals, such as Microsoft’s $13 billion partnership with OpenAI. The EU’s comprehensive regulatory strategy aims to leave no aspect of the digital realm unaddressed.
