The European Union has made it crystal clear that it won’t be funding Big Tech’s homework. On Tuesday, EU tech chief Margrethe Vestager said they have no plans to help Big Tech companies cover the cost of complying with the Digital Services Act (DSA) and Digital Markets Act (DMA), two major laws reshaping how platforms operate across Europe. Reuters broke the story.
Big platforms like Google, Apple, Meta, Amazon, and TikTok are already feeling the heat from the new rules, which came into full effect earlier this year. They’re being forced to tweak algorithms, improve transparency, open up app stores, stop self-preferencing their own services, and most importantly spend big on legal and technical changes to stay compliant. Vestager’s message? That’s your problem, not ours. “There is no taxpayer money earmarked for companies to implement the law. That’s a cost of doing business,” she told reporters in Brussels.
To do a little breakdown,
- Digital Services Act (DSA): Aimed at making the internet safer. It demands more transparency from online platforms, especially around algorithms, ads, and content moderation.
- Digital Markets Act (DMA): Gatekeepers those tech giants with massive influence. It forces them to open up their ecosystems, stop unfair practices, and play fair with smaller rivals.
Companies that fail to comply face hefty fines up to 10% of global turnover, and up to 20% for repeat offenders, according to EU Commission rules. Big Tech isn’t thrilled, while the EU says the laws are about fairness, safety, and accountability, major platforms have pushed back.
- Meta, for example, has already launched a subscription model in the EU to comply with privacy laws.
- Apple is facing lawsuits over App Store changes required by the DMA, and regulators still say they haven’t gone far enough.
- Google, TikTok, and others are under ongoing investigations for how they’re implementing the rules, as covered by TechCrunch.
Their gripe? The cost of compliance is steep, especially when updates to systems, reporting mechanisms, and transparency dashboards are involved. But the EU isn’t budging. If you want to play in Europe’s market, you pay to play. Vestager is standing firm, no financial cushion for Big Tech. Instead, the focus will be on enforcement, transparency, and making sure the rules are actually followed. Meanwhile, EU regulators are still working on the fine print. Expect more clarity on enforcement timelines, reporting standards, and platform audits in the coming months.
Related: OpenAI’s New ChatGPT Agent Can Now Work Like a Real Assistant — Minus the Salary
As Vestager put it, “These companies make billions. They can afford to follow the rules.”
