After nearly two years of legal wrangling, the European Parliament on Tuesday passed the Digital Markets Act and the Digital Services Act, teeing up a

Europe passes sweeping antitrust laws targeting America's Big Tech

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2022-07-06 10:00:07

After nearly two years of legal wrangling, the European Parliament on Tuesday passed the Digital Markets Act and the Digital Services Act, teeing up a showdown between the continent and US tech giants.

With the two sets of laws approved, the measures move to the European Council for passage. If green-lit, as is expected over the next few months, the DMA and DSA will go to EU nations to implement and put into action. We note that neither act will be enforceable until January 1, 2024 at the earliest.

Both acts place restrictions on the behavior of large tech companies. The DMA aims to rein in the power of "gatekeepers" that are too large to be avoided, while the DSA operates under the assumption that "what is illegal offline, should be illegal online," as the EU Parliament describes it.

Gatekeeper companies include Amazon, Google, and Facebook, which control access to platforms that are used by third-party businesses. The DMA will regulate these souks and social networks by preventing them from curtailing access to their platforms or prioritizing their own goods and services over those of competitors.