European Union Regulations Shape Tech Industry in 2023
2 min read
In 2023, the European Union played a significant role in shaping the tech industry, as major tech companies made concessions that were once considered unthinkable. Apple, Meta, TikTok, and Snapchat all made changes to their services in response to EU regulatory pressure.
One of the most notable changes was Apple’s decision to adopt the RCS protocol, allowing for text message interoperability with Android devices. This change was a direct result of a European law that made USB-C the common charging standard. Apple’s executive, Greg Joswiak, acknowledged that they had no choice but to comply with local laws.
Another significant change was Apple’s agreement to support the RCS standard in iMessage. This decision was widely believed to be a result of political will within the EU. Apple had previously been resistant to supporting RCS, but they made the announcement on the same day as the deadline for companies to challenge the EU’s gatekeeper rules.
The Digital Markets Act (DMA) and the Digital Services Act (DSA) are two EU laws that have had a significant impact on the tech industry. The DMA requires major social media apps, such as Facebook, TikTok, Twitter, YouTube, Snapchat, and Instagram, to make detailed disclosures about disinformation and other harmful content, as well as explain how their recommendation algorithms work.
The DSA, on the other hand, focuses on enforcing transparency and accountability in the tech industry. It requires social media platforms to provide users with more control over their data and privacy settings. Snapchat, Meta, and TikTok have all allowed European users to opt out of their recommendation algorithms, while Snapchat has also ended most targeted advertising for 13- to 17-year-olds in the EU.
These changes may not seem monumental, but they do challenge the core business models of these tech companies. It is unlikely that these companies would have voluntarily acted against their self-interest if left to self-regulate, as has been the case in the United States.
The European Union’s regulatory efforts have shown that there is a higher degree of consumer protection in Europe compared to the United States. These protections often “cascade down” to other regions, as it is impractical to implement different standards across geographies.
In conclusion, the European Union’s regulatory actions in 2023 have had a significant impact on the tech industry, forcing major companies to make concessions that were once considered unthinkable. These changes have benefited both European and US users, demonstrating the importance of strong regulatory frameworks in protecting consumers and promoting fair competition in the tech sector.
