The European Union is on a mission to curb the power of bigtech.
Yet critics say the rules have been ineffective.
Analysts claimthe legislation has failed to protect competition, while giving companiesroutes to avoid enforcement.
In 2023, the bloc has grand ambitions to change that.
A key component of the plans is the new Digital Markets Act (DMA).
In May 2023, the new rules will start to apply.
The act is the cornerstone of two complementary objectives for the EU: reducing big techs dominance and fosteringEuropeanchallengers.
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The duo is optimistic about the impact on competition.
Consumers and businesses will have more choice, better features, and improved privacy.
Messaging is finally catching up with the openness of the web and email.
Hodgson, meanwhile, pointed to the effects on opening up access.
The DMA stipulates that big tech must open up its APIs to enable widespread interoperability, he said.
The DMA will force a change in behavior.
Making business plans
Increasing competition could leave gaps for European challengers to enter.
The EU, however, has historically struggled to turn its world-leading research into big tech companies.
One barrier is the notoriously slow and inefficient transfer of IP from academia to the economy.
I expect more openness.
Another issue for tech businesses in the EU is integration across member states.
Companies have long complained about the complexity of navigating the unions tax and employment requirements.
Congedo predicts the bloc will address these challenges.
A notable example is the European Chips Act.
Proposed in February 2022, the framework aims to encourage semiconductor production in the union.
As of 2022, Europe accounts for less than 10% of the global production of semiconductors.
The European Commission wants to ramp that up to 20%, by plowing 43 billion into the sector.
Mark Lippett, CEO of chip specialistXMOS, has mixed expectations for the legislation.
While he welcomes the investment, hes worried that the bloc will wrap the sector in red tape.
Providing funding for businesses in a supply-threatened environment offers some obvious fail-safes in times of trouble, he said.
This will help fuel innovation.
Another focus area for the EU is artificial intelligence.
IT companies hope the legislation boosts European innovation.
Ultimately, the EU hopes to stimulate innovation by leveling the playing field.
Its an approach thats attracting imitators around the world.
Consensus has undoubtedly shifted to the former.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
