European Platform Regulation Intensifies
Regulatory pressure on major technology platforms is growing across Europe. The UK's Competition and Markets Authority is seeking commitments from Apple and Google for greater app store fairness, a move that could influence wider EU policy. Meanwhile, a major conference in Amsterdam this week is focused on the impact and legal context of the EU's Digital Services Act (DSA).
- The UK's Competition and Markets Authority (CMA) designated Apple and Google with "strategic market status" (SMS) in October 2025, enabling it to impose measures for fair dealing, open choices, and transparency. The commitments secured are a direct result of this designation and will take effect from April 1st, 2026. - The Digital Services Act (DSA) and the Digital Markets Act (DMA) are companion regulations; the DSA focuses on user safety and content moderation, while the DMA targets anti-competitive practices by large "gatekeeper" platforms. - Under the DSA, platforms with over 45 million monthly users in the EU are designated as Very Large Online Platforms (VLOPs) and face the strictest obligations, including risk management and data sharing with authorities. - Failure to comply with the DSA can result in significant fines of up to 6% of a company's global annual turnover. The European Commission issued its first-ever DSA fine in December 2025, penalizing X (formerly Twitter) with €120 million for breaches related to its blue checkmark system and advertising transparency. - Key requirements of the DSA for platforms include creating user-friendly mechanisms to report illegal content, providing transparency around content moderation decisions and algorithms, and offering users the ability to appeal content removals. - The DSA also bans targeted advertising to minors and the use of sensitive personal data for ads, prompting platforms like Snapchat, Google, YouTube, and Meta to adjust their advertising systems. - The commitments from Apple and Google to the CMA include fairer and more transparent app review and ranking processes that do not give preferential treatment to their own apps. - While the CMA's agreement addresses app review and data handling, it does not currently change the controversial up-to-30% commission fees that Apple and Google charge developers for in-app purchases.
