EU agrees sweeping new digital rules in effort to curb big tech’s power

theguardian.com:

The European Union reached an agreement on landmark digital rules to rein in online “gatekeepers” such as Google and Facebook’s parent company, Meta.

EU officials agreed late on Thursday on wording for the bloc’s Digital Markets Act, part of a long-awaited overhaul of its digital rulebook. The act, which still needs other approvals, seeks to prevent tech giants from dominating digital markets, with the threat of large fines or even the possibility of a company breakup.

For instance, tech companies face tighter restrictions on using people’s data for targeted online ads, a primary source of revenue for the likes of Google and Facebook. And different messaging services or social media platforms will be required to work together.

The new rules underscore how Europe has become a global pacesetter in efforts to curb the power of tech companies through an onslaught of antitrust investigations, stringent regulations on data privacy and proposed rules for areas like artificial intelligence.

“What we have been deciding about yesterday will start a new era in tech regulation,” European Union lawmaker Andreas Schwab said at a press conference on Friday.

The European Consumer Organisation, or BEUC, welcomed the agreement, saying it would help consumers by creating fairer and more competitive digital markets.

Tech companies were less enthusiastic.

Apple said it was concerned that parts of the Digital Markets Act “will create unnecessary privacy and security vulnerabilities for our users while others will prohibit us from charging for intellectual property in which we invest a great deal”.

Google said it will study the text and work with regulators to implement it. “While we support many of the DMA’s ambitions around consumer choice and