Major technology companies such as Amazon, Apple, Google, Meta, Microsoft or Samsung, among others, have been designated as “gatekeepers” under the European Union’s digital market law. Admittedly, this name does not mean anything to you and it seems “cooler” than it actually is, but this designation is used by companies with a strong position on European territory, to undertake not to use their influence to create monopolies or harm global competition.
Interestingly, TikTok isn’t on the list, and according to EU Internal Market Commissioner Thierry Breton, that’s because he feels it doesn’t meet certain criteria. There are more companies waiting to be taggedIt’s not something they decide, make no mistake about it, it’s the European Union itself that labels them and imposes certain types of obligations on them under penalty of heavy fines.
It’s not a privilege, it’s an obligation
The criteria used to define a tutor include a solid economic position, a significant impact on the internal market and activity in several countries of the European territory joining the EU. Additionally, they must have a strong brokerage position by connecting a large user base with numerous businesses. They are also required to have an established and lasting presence in the market for a certain period of time.
As gatekeepers, these companies are required to comply with certain obligations to avoid anti-competitive practices. Among what is asked of them are:
- Do not favor your own services.
- Enable consumers to connect with businesses outside of their platforms.
- Don’t prevent users from uninstalling pre-installed apps.
- Do not track users without their consent for targeted advertising.
Failure to comply with these rules can lead to heavy fines, which they could reach up to 10% of the overall annual turnover of companies or even 20% in the event of a repeat offense. In addition, periodic penalty payments will be applied and additional corrective measures will be taken in the event of systematic violations.
