Institute of Internet Economics

Tech Giants Under Scrutiny: The Push for Stricter Internet Regulations

In recent years, the dominance of major technology companies—often referred to as “Big Tech”—has attracted increasing scrutiny from governments and regulatory bodies worldwide. This heightened attention has led to the introduction of various legislative measures aimed at curbing monopolistic practices, promoting fair competition, and safeguarding consumer interests in the digital realm.

The European Union’s Digital Markets Act (DMA)

In March 2025, the European Union implemented the Digital Markets Act (DMA), a landmark regulation targeting large online platforms deemed “gatekeepers.” The DMA imposes specific obligations on these companies to ensure a level playing field in the digital market. The European Commission identified six major tech firms—Alphabet (Google), Amazon, Apple, ByteDance, Meta (Facebook), and Microsoft—as gatekeepers, subjecting them to the new rules. (finance.yahoo.com)

The DMA outlines several key provisions, including:

Prohibition of Self-Preferencing: Gatekeepers are barred from favoring their own services over those of competitors. For instance, Google must not prioritize its own search results above others.

Data Sharing Requirements: Companies are mandated to share certain data with business users to promote transparency and competition.

Interoperability and Data Portability: The act requires gatekeepers to ensure their platforms are interoperable with smaller competitors and to facilitate data portability for users.

Non-compliance with the DMA can result in substantial fines, potentially up to 10% of a company’s global turnover. (en.wikipedia.org)

The United States’ Antitrust Actions

In the United States, antitrust scrutiny of Big Tech has intensified. In August 2024, a federal judge ruled that Google violated the Sherman Antitrust Act by maintaining a monopoly in general search services and general text advertising. The Department of Justice (DOJ) proposed remedies, including the potential sale of Google’s Chrome browser and restrictions on its agreements that make Google the default search engine on mobile devices. (en.wikipedia.org)

Additionally, the Advertising Middlemen Endangering Rigorous Internet Competition Accountability (AMERICA) Act was introduced in March 2023. This bipartisan bill aims to address monopoly power in the advertising technology market, particularly targeting the dominance of companies like Google and Facebook. (en.wikipedia.org)

Global Regulatory Efforts

Beyond the U.S. and Europe, other regions are also taking steps to regulate Big Tech. In August 2024, the Asia Internet Coalition, representing companies such as Amazon, Apple, Google, Meta, Microsoft, Netflix, and Spotify, opposed India’s proposal to regulate over-the-top (OTT) services. The coalition argued that OTT services differ fundamentally from traditional telecom operations and that such regulation could violate net neutrality principles. (techcrunch.com)

Lobbying and Resistance

In response to these regulatory initiatives, Big Tech companies have engaged in extensive lobbying efforts. In 2023, these companies collectively spent over €97 million lobbying the European Union, with Meta and Google leading the expenditures. In the U.S., tech lobbying expenditures surpassed $50 million between January and September 2024. (progressive.org)

These lobbying efforts aim to influence legislation and prevent regulations that could impact their business models. Critics argue that such resistance underscores the need for effective regulation to ensure fair competition and protect consumer interests.

Implications for the Digital Economy

The push for stricter internet regulations reflects a global recognition of the need to balance innovation with consumer protection. While Big Tech companies have been instrumental in driving technological advancements, their market dominance raises concerns about competition, data privacy, and the dissemination of information.

Effective regulation is essential to foster a competitive digital marketplace, encourage innovation, and safeguard user rights. As regulatory bodies continue to scrutinize Big Tech, the outcomes of these efforts will significantly shape the future of the digital economy.

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