Ka-Ching: The Old Sound of New Revenue for the European Union
July 21, 2022
New billing cycle begins. Two benefits. The first is more revenue from fines on US big tech money spinners and the second is a good old school slide tackle with the cleats up. Ouch.
“DMA: Council Gives Final Approval to New Rules for Fair Competition Online” states:
The [Digital Marketing Act] DMA ensures a digital level playing field that establishes clear rights and rules for large online platforms (‘gatekeepers’) and makes sure that none of them abuses their position. Regulating the digital market at EU level will create a fair and competitive digital environment, allowing companies and consumers to benefit from digital opportunities.
And the bold face? That was part of the cited announcement. Ka-ching, slide, oh, broken shin, too bad, mon ami.
The write up elaborated that the Silicon Valley type of logical and efficiency centric companies will no longer be allowed to:
- rank their own products or services higher than those of others (self-preferencing)
- pre-install certain apps or software, or prevent users from easily un-installing these apps or software
- require the most important software (e.g. web browsers) to be installed by default when installing an operating system
- prevent developers from using third-party payment platforms for app sales
- reuse private data collected during a service for the purposes of another service.
Now the ka-ching part. Fines can be up to 20 percent of worldwide revenues. That means that the fines levied by Russia’s estimable agencies are small, brown, shriveled potatoes.
Then the slide tackle: The high tech “way above the clouds in self confidence and entitlement” will have to “inform the European Commission of their acquisitions and mergers.”
Well, so what? That’s an email, right?
Not so fast. A failure to “inform” means the 20 percent fee kicks in. A sluggishness, a bad attitude, and the old let’s apologize tactic will beget additional legislation.
What if the big dude-oids don’t follow the rules?
Just between you and me, okay, renting an apartment in France can be complicated. Now imagine how complicated it will become when the EU creates an environment in which regulatory authorities take a close interest in any touch point with a member. How about flying into Frankfort and being escorted to a return flight to the US? What about a private jet with a happy Silicon Valley-type logo on its tail being refused access to air space? What about some of those interesting employer-employee requirements: Lunch for a French staff in Paris is trivial to employment regulations not codified in a single law.
The write up resonates with that most musical sound: Ka-ching, ka-ching, ka-ching. Why? The agreement was adopted.
Stephen E Arnold, July 21, 2022
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