Tag: digital markets act

  • Meta’s ‘Pay Or Consent’ Advertising Model Fails To Comply With DMA; EU Informs |

    New Delhi: The European Union on Monday informed Meta (formerly Facebook) of its preliminary findings that its “pay or consent” advertising model fails to comply with the Digital Markets Act (DMA).

    In the European Commission’s preliminary view, “this binary choice forces users to consent to the combination of their personal data and fails to provide them with a less personalised but equivalent version of Meta’s social networks”.

    DMA was introduced by the EU’s commission to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access.

    In response to regulatory changes in the EU, Meta introduced in November 2023 a binary ‘pay or consent’ offer whereby EU users of Facebook and Instagram have to choose between – ‘the subscription for a monthly fee to an ads-free version of these social networks’ or ‘the free-of-charge access to a version of these social networks with personalised ads’.

    “The commission takes the preliminary view that Meta’s ‘pay or consent’ advertising model is not compliant with the DMA as it does not meet the necessary requirements set out under Article 5(2),” the commission said in a statement.

    Under Article 5(2) of the DMA, gatekeepers must seek users’ consent for combining their data between designated core platform services and other services, and if a user refuses such consent, they should have access to a less personalised but equivalent alternative.

    “Our preliminary view is that Meta’s advertising model fails to comply with the Digital Markets Act. And we want to empower citizens to be able to take control over their own data and choose a less personalised ads experience,” said Margrethe Vestager, Executive VP in charge of competition policy.

    In case of non-compliance, the commission mentioned that it can impose fines of up to 10 per cent of the gatekeeper’s total worldwide turnover. Such fines can go up to 20 per cent in case of repeated infringement.

  • What Is India’s EU-Like Anti-Trust Proposal That Irked Tech Giants Google, Amazon, Apple? |

    New Delhi: A US lobby group representing Google, Amazon and Apple has requested India to rethink its proposed EU-like competition law. This law is arguing regulations against data use and preferential treatment of partners could raise user costs, a letter shows.  

    In February, a government panel in India proposed imposing obligations on a few major digital companies under a new antitrust law, citing the increasing market power of these entities. The panel highlighted that existing regulations are “time-consuming” to enforce.

    Digital Competition Bill: 

    India’s “Digital Competition Bill” is on the lines of the EU’s landmark Digital Markets Act 2022. This bill targets large firms, including those with a global turnover of over $30 billion and whose digital services have at least 10 million users locally, bringing some of the world’s biggest tech firms under its ambit. 

    However, some of the globe’s largest tech firms would fall within its scope. The bill has been proposed to prohibit companies from exploiting the non-public data of their users and promoting their services over rivals. It also gives authority to abolish restrictions on downloading third-party apps.  

    India Lucrative Market For Big Tech Companies:

    With a population exceeding 1.4 billion and a growing affluent class, India is a potential market for major tech corporations. This month, Apple CEO Tim Cook asserted that the company posted a “revenue record” in India during the March quarter when its overall global revenue declined by 4%.

    In response to concerns about a few dominant digital players exerting substantial influence over the market, an Indian panel asserts the necessity of a new law. This proposal, similar to measures in the EU, suggests penalties of up to 10% of a company’s annual global turnover for infringements. 

    Despite these challenges, a coalition of 40 Indian startups voices support for the new legislation, arguing it could curb monopolistic behaviours of major digital platforms and foster fair competition for smaller entities.

    Scrutiny On Amazon, Apple

    To recall, Amazon finds itself under scrutiny for alleged preferential treatment of certain sellers on its Indian platform, a claim it refutes. Likewise, Apple refutes allegations but faces investigation over the purported misuse of its dominant position in the apps market.

    There is no fixed timeline, however, the Indian government plans to review feedback on the proposal before pursuing parliamentary approval, potentially with modifications or without changes. 

  • Digital Markets Act: EU Starts Probe Into Apple, Meta, Google Under New Digital Law |

    New Delhi: The European Union (EU) has started an investigation into big tech giants Apple, Google parent Alphabet and Meta, in its first probe under the sweeping new Digital Markets Act (DMA) tech legislation. The EU has started the investigation after the potential breaches of the newly enacted anti-trust law. 

    The suite of probes announced are the first under the EU’s Digital Markets Act law, which took effect earlier this month. 

    The DMA has categorized six major tech firms — Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft — as gatekeepers, mandating their adherence to specific provisions to boost more competition in digital markets, including allowing third-party app stores.

    The European Commission announced five investigations into Apple, Google, and Meta’s compliance with the DMA, with completion expected within 12 months. (Also Read: iPhone 14, iPhone 14 Plus Get Price Cuts In India On Flipkart, Starting At Rs 56,999)

    Apple and Alphabet (Google’s parent company) will undergo EU scrutiny regarding how they enable app developers to shift consumers to third-party app stores without charges. Adding further, the European Union will also examine changes that Google made to how its search results appear in Europe. 

    Another investigation will focus on Apple’s adherence to rules facilitating the easy removal of apps and changes to default settings on iPhones, along with how the company presents choice screens for alternative search engines and browsers.

    Meta’s ‘pay or consent’ model, requiring users to pay for data protection and ad-free experiences on Facebook and Instagram, will also be examined.

    The EU’s recent law, effective this month, mandates major tech companies to follow numerous new rules, aiming to enhance competition from smaller entities in digital advertising, online search, and app ecosystems.

    Earlier, the Wall Street Journal reported on Wednesday that Apple, the tech giant, plans to add new fees and restrictions for third-party software downloads outside its App Store. (Also Read: Tesla CEO Elon Musk Thought That OpenAI Would Fail: OpenAI CE0 Sam Altman)

    This development follows the enforcement of the Digital Markets Act (DMA) by the European Union, aimed at targeting the market clout of big technology companies and making it easier for people to move between competing services. 

  • Meta Offers To Almost Halve Facebook, Instagram Monthly Fees

    Meta launched the service to comply with the Digital Markets Act which curbs its ability to personalise ads for users without their consent.

  • Apple Allows Sideloading Apps On iPhone In Some Countries, Excluding India

    Apple is making crucial updates on iPhone and iPad software, allowing app sideloading in the EU due to the Digital Markets Act. Changes exclude India. 

  • Apple To Plan Fees, Apply Restrictions For Third-Party Downloads |

    New Delhi: The Wall Street Journal reported on Wednesday that Apple, the tech giant, plans to add new fees and restrictions for third-party software downloads outside its App Store. This development follows the enforcement of the Digital Markets Act (DMA) by the European Union, aimed at targeting the market clout of big technology companies and making it easier for people to move between competing services.

    Notably, all big tech companies must comply with the Digital Markets Act (DMA) by March 7. (Also Read: Twitter, LinkedIn, Telegram And Other Platforms Face Data Breach, 26 Billion Records Leaked)

    In a move specific to Europe, Apple’s proposal allows users to download software onto their iPhones directly, bypassing the App Store for the first time. In a similar vein, Meta announced plans on Monday to comply with the act, stating that users will be given more choices on how they consume its services.

    Earlier, to enhance the security features of its leading devices in markets, Apple, the tech giant, has officially released the highly awaited updates, iOS 17.3 and iPadOS 17.3. These updates bring improvements to the supported devices. (Also Read: Apple Rolls Out iOS 17.3 Update With THESE Features; Check Here)

    The latest release includes new features, such as collaborative Apple Music playlists, AirPlay for hotel TVs, and the 2024 Black Unity wallpaper. Notably, Apple’s Stolen Device Protection steals the spotlight, adding an extra layer of security to protect user data.