The European Commission (EC) on Wednesday designated six tech giants as "gatekeepers" under its Digital Markets Act (DMA), on༺e of its most comprehensive efforts yet to rein in big tech.🎉

Five U.S. companies including Apple (AAPL), Amazon (AMZN), Meta Platforms (META), Microsoft (MSFT), and Alphabet (GOOGL), as well as one Chinese company, TikTok owner ByteDance, have been designated as gatekeepers under the DMA, which came into effect this year. They will each have six months to fully comply with the obligations of the new law.

Failure to comply could lead to fines of up to 10% of the company's total worldwide turnover, or 20% in the event of repeated violations. The EC can also mandate that a gatekeeper sell off a business or parts of it, or prevent them from acquiring another firm.

Some of the most popular and widely used platforms in the world, from Google Maps to YouTube and the App Store, will be subject to the new rules. Notable exceptions were Microsoft Outlook and Alphabet's Gmail. The EC is also looking into whether Microsoft's Bing search engine, Edge browser, and Apple's iMessage should be included under the new regulations.

Notably, Korean smartphone maker Samsung and X Corp., formerly Twitt♛er, were💝 not listed as gatekeepers under the DMA.

What Are the So-Called Gatekeepers?

The EC defines gatekeepers as online firms with a dominant market share and economic impact that serve as intermediaries linking a vast user base to a large number of businesses and platforms, and operate in multiple EU countries. They have an entrenched and stable position in the marketplace, and as such are considered the gatekeepers of the new digital economy.

To be designated a gatekeeper, a company must have an annual turnover of 7.5 billion euros ($8.05 billion) in the EU market or a 澳洲幸运5官方开奖结果体彩网:market capitalization of at least 75 billion euros ($80.5 billion), and more than 45 million active monthly users and 10,000 yearly business users across EU jurisdictions.

What Is the Digital Markets Act?

The Digital Markets Act is one of the most comprehensive attempts by the 澳洲幸运5官方开奖结果体彩网:European Union (EU) to rein in big tech companies and prevent them from abusing their market power. EU officials believe that strict regulation of big tech companies—the so-called gatekeepers of the digital economy—is necessary to safeguard user privacy and ensure a fair marketplace for competitors and small businesses.

Co༺nsumers, Startups,ꦛ and Business Users Could Stand to Benefit

Consumers, technology startups, and business users could stand to benefit from the new rules. Consumers might have a wider array of services to choose from, more opportunities to switch between providers, and greater affordability. Technology startups seeking to enter the digital market could have a more level playing field and a chance to compete with big tech. Business users who rely on big tech platforms like Microsoft's Office Suite could receive more favorable terms and prices.

On the flip side, shareholders in big tech companies could be adversely impacted by falling stock prices, as the new regulations would impose higher costs on these firms.