EU Commission Clamps Down on Six Large Tech Firms

The European Commission announced on Wednesday that six leading tech firms, including Amazon, Alphabet, Apple, Microsoft, Meta, and ByteDance, are now labeled as "gatekeepers" under the new Digital Markets Act. This legislation introduces stringent regulations that could greatly impact the operations of big online platforms.

Out of these six companies, five are based in the U.S., while ByteDance, the parent company of the hugely popular app TikTok, is Chinese. TikTok's soaring popularity has raised global concerns, with officials worried about its potential to spread misleading information to its young user base.

The Commission stated that these major online platforms could potentially limit users' access to such essential services as online search, advertising and communication.

The Digital Markets Act is a pioneering European law aimed at curbing unfair competition from large tech corporations. Smaller online businesses have voiced their grievances, stating that they've been adversely affected by the dominant business tactics of these tech giants.

Smaller tech companies will be boosted by the news. Both Google and Apple, which run the world's leading mobile operating systems, charge a 30% fee on in-app transactions. This rate has been criticized by companies like Spotify and Epic Games, who argue it's excessive.

The full effects of the clampdown will be known in time. However, analysts believe that the affected firms will have to adapt quickly to any restrictive legislation to protect their margins.