international_ The European Union recently passed two new bills, which are expected to have a significant impact on the two app store platforms Apple and Google.
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Apple and Google Store face big consequences as EU adopts new digital bill. One bill is called the Digital Services Act and the other is called the Digital Markets Act.
The bills were initially proposed in December 2020 and were finally formally adopted by the EU Council. The bills will go into effect 20 days after they are published, which is expected in the fall of this year.
The new law affects two app stores.
The law has far-reaching effects, from network operators to online app stores. In the EU’s official statement, Margerethe Vestager, Executive Vice President of the European Digital Era, said: “Major platforms will need to avoid promoting only their own interests, analyzing data with other platforms. other companies and allow more app stores to enter the market. Because as a great platform, with greater responsibility knows what can and cannot be done.”
While the full impact of the act on game companies is unclear, its impact on Apple and Google is already present. Both have struggled with antitrust lawsuits and investigations against their mobile ecosystems in recent years.
The Digital Markets Act will force platforms to allow users to install and uninstall software through means other than official stores, and will not allow platforms like Apple and Google to block websites. Third-party payment methods skip the cut.
These issues have been at the heart of Epic Games’ lawsuits against Apple and Google in recent years. Fortnite’s developers won a major US court victory in 2020. Since then, Apple has been in the process of pursuing the ruling.
The Digital Markets Act mainly targets large online platforms, which the EU calls “gatekeepers”. Companies defined as “gatekeepers” typically have the following characteristics:
+ Has a “strong economic position” and “significant influence” on the EU’s internal market.+ Has a “strong middleman position”, which means it can connect a large number of users with a large number of businesses.+ Having a “fixed market position” that meets the above criteria for three consecutive financial years.+ Violations can result in penalties of up to 10% of annual sales corporate global, repeat violators can be fined up to 20% and the most severe penalties can result in a fine of 5% of the company’s global daily revenue.+ They must allow the user to install or use third-party applications or stores that are compatible with their operating system.+ They must allow users to uninstall pre-installed applications at any time, as well as modify configuration bootstrap operating system defaults, virtual assistants and web browsers.
On its official website, the EU says the aim of the Digital Markets Act is to prevent “gatekeepers” from imposing unfair conditions on businesses and users, and to ensure openness of key digital services.
