Techonology

European Commission criticized for weak regulation of Big Tech

European politicians and advocacy groups are adamant that the region’s law is not tough enough to end the monopoly of Big Tech companies. In the past week, two open letters have been written to regulators criticizing how Apple and Google remain unregulated.

On January 16, four digital rights groups reacted to the proposed measures by the European Commission for Apple to ensure interoperability with the iOS and iPadOS operating systems. They allege that Apple’s existing process for handling interoperability requests is complex, discouraging developers from submitting them.

“Gatekeeper” organizations – the most prominent tech companies operating in Europe, including Apple and Google’s parent company Alphabet – are required, in accordance with the Digital Markets Act, to freely trade their software and hardware products with their own. Must provide the third party with the tools necessary to perform the work properly. ,

WATCH: EU approves NVIDIA deal with Run:ai, Apple pushes for interoperability

The following day, the Club de Madrid, a network of former European heads of state, voiced support for the Commission to “end Google’s monopoly on digital advertising technologies” through forced divestment.

“Google’s unchecked dominance, stemming from its 2007 acquisition of DoubleClick, has stifled competition and tightened its control over every sector of the adtech market,” the 18 leaders wrote in a letter. Letter,

In June 2023, the Commission told Google that a “Compulsory Disinvestment” The only way to address competition concerns would be to acquire a stake in its ad tech business. This comes after an investigation revealed a preliminary view that the company may have breached EU antitrust rules. According to the letter from Club de Madrid, the Commission will announce the final results soon.

Digital advocacy groups say Apple is still able to avoid interoperability with the existing Digital Markets Act

In September 2024, the European Commission initiated two proceedings The DMA is intended to guide Apple in enhancing interoperability between iOS, iPadOS, and third-party devices such as smartwatches and headphones. Then, in December, he published it Preliminary findings and proposed measures,

Recommended measures include improving compatibility between iOS and features of devices such as smartwatches and earbuds. These features include notifications, automatic Wi-Fi connection, AirPlay, AirDrop, and automatic Bluetooth audio switching.

WATCH: Meta and Apple breached Digital Markets Act, EU charges

The authority also suggested that Apple make its process for developers to request interoperability within iOS and iPadOS features more transparent and predictable. This includes providing clear information about its internal characteristics and providing timely request status updates.

However, the Free Software Foundation Europe, Article 19, European Digital Rights and Data Rights stated that the Commission’s proposals are “manifestly inadequate and structurally incapable of providing effective interoperability.” in their LetterThe groups recommend that Apple:

  • Embrace interoperability by design because it is “required by the letter of the DMA” rather than relying on a reactive, request-based model.
  • It will not be allowed to “enforce non-disclosure agreements at its sole discretion” that block access to APIs.
  • Developers are required to provide a standardized, freely accessible interoperability request form, dedicate sufficient resources to handle them, and provide greater transparency on the status or rejection of requests.
  • Not being able to use security claims to block effective interoperability.
  • Be encouraged to offer “flexible” third-party APIs in response to interoperability requests, which accommodate different developer needs.
  • Improve or overhaul your systems to address interoperability-related bugs.

They also suggest that the Commission should appoint neutral conciliators to resolve disputes and prevent Apple bias.

In response to the Commission’s proposed measures, Apple published a document Outlining how providing access to its technology stack and, thus, user data could compromise privacy and security. It highlighted how Meta had made 15 requests for access to Apple’s software tools, which, if accepted, would provide large chunks of user data, and charged the company with “breach of privacy”. “Repeated fines have been imposed by regulators.”

WATCH: Meta serves less personalized ads to EU users to appease regulators

Andy Stone, Director of Meta Communications Answered this on x: “That’s what Apple is really saying: They don’t believe in interoperability. In fact, whenever Apple is called out for anti-competitive behavior, they defend themselves on privacy grounds that have no basis in reality.

Former European heads of state say Google’s dominance of ad tech sector threatens democracy

The digital advertising technology sector, known as the “ad tech stack”, includes various intermediaries that facilitate the sale of online advertisements. Four of these are owned by Google: Google Ads, DV360, AdX, and DoubleClick For Publishers.

Both Google Ads and DV360 are used by advertisers to bid for ad spaces on websites and apps. DoubleClick for Publishers is a platform for managers of websites and apps where they can list their available ad space. AdX connects the two by matching the advertiser with the highest bid with the website or app manager in a real-time auction.

Club de Madrid described this setup as “as if Goldman or Citibank owned the New York Stock Exchange.” Google’s ownership of a significant part of the ad tech stack means that despite the pioneering DMA and the publication of the Digital Services Act “Europe’s democracy is still at risk”.

The group, which includes former heads of state from France, the Netherlands, Austria, Greece, Sweden, Belgium, Finland and Poland, said Europe’s “dependence on foreign platforms” that hurts news organizations’ bottom line is destroying local journalism. Can do. Ultimately, political and other types of misinformation spread.

The Club de Madrid made two recommendations in its letter:

  1. Following decisive action in the ongoing Google investigation, regulators should be given the resources and authority to implement structural measures that restore fair competition.
  2. The Commission should actively promote European innovation – such as supporting startups, implementing DMAs and DSAs and building independent digital infrastructure.

The second point specifically addresses recent criticism that lack of funding and over-regulation has led to a technological gap between Europe and other global superpowers such as the US. Only four of the world’s top 50 tech companies are European.

Club de Madrid also supports the sentiments expressed by Teresa Ribera, Europe’s new competition commissioner. bloomberg tv Where he said that Google’s disinvestment order is still on the table.

In response to the letter, a Google spokesperson said wall street journal: “As we have said before, although we disagree with the European Commission’s approach, we have been engaging constructively.” He said the company is committed to creating value for publishers and advertisers.

Authorities around the world have raised objections to Google’s adtech practices. The UK’s Competition and Markets Authority provisionally ruled in September that Google’s dominance of the ad tech market is harmful to competitors.

The Alphabet-owned company is facing a similar antitrust lawsuit Online Publishers Group In Britain. advertising techniques collective action The allegation is that Google abused its dominant position in the digital advertising technology sector, causing losses of £13.6 billion.

Across the pond, Ongoing investigation by the US Justice Department The allegation is that Google “unlawfully used distribution agreements to stifle competition.” Additionally, in August, a federal judge ruled that the tech company held a monopoly on general search services and text ads and broke antitrust laws.

However, Google does not quietly accept these allegations. In September, the tech company successfully overturned a €1.5 billion antitrust fine it received from the European Commission in 2019 to prevent third parties using its AdSense platform from displaying competitive ads next to Google search results.

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