Microsoft and Google Comply with EU's New Tech Regulations, Aiming for Easier User Access Across Services
Portfolio Pulse from Anusuya Lahiri
Microsoft Corp (MSFT) and Alphabet Inc (GOOG, GOOGL) Google have agreed to comply with the EU's Digital Markets Act (DMA), which requires 'gatekeeper' services to make user access across services easier, including interoperability of messaging apps and freedom to choose pre-installed apps. The DMA affects other tech giants like Amazon (AMZN), Apple (AAPL), Meta Platforms (META), and ByteDance's TikTok. Companies have until November 16 to contest the regulations. Zalando (ZLNDY) and Amazon have challenged the related Digital Services Act (DSA). GOOG shares saw a 1.50% increase to $135.65.
November 14, 2023 | 5:12 pm
News sentiment analysis
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NEGATIVE IMPACT
Amazon is affected by the EU's DMA and has challenged the related DSA, indicating potential legal and operational challenges ahead.
Amazon's challenge to the DSA suggests dissatisfaction with the EU's regulations, which could lead to legal battles and operational changes. The negative score reflects potential short-term uncertainty and market concerns.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Zalando challenges the EU's Digital Services Act, indicating potential legal disputes and resistance to the new regulations.
Zalando's challenge to the DSA could lead to legal disputes and suggests resistance to regulatory changes, which may create short-term uncertainty for the company and potentially negative market sentiment.
CONFIDENCE 70
IMPORTANCE 55
RELEVANCE 50
NEUTRAL IMPACT
Apple is included in the EU's DMA, which may necessitate changes to its app ecosystem, impacting its operational strategy.
Apple's inclusion in the DMA could require adjustments to its app ecosystem, but the company's history of adapting to regulations suggests a neutral impact in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Alphabet's Google complies with the EU's DMA, which could lead to more stringent rules for its services but shows regulatory cooperation.
Google's compliance with the DMA may subject it to stricter regulations, especially as it operates the highest number of 'gatekeeper' services. The neutral score reflects the balance between regulatory pressure and positive market response to its 1.50% stock increase.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 80
NEUTRAL IMPACT
Alphabet's Google complies with the EU's DMA, which could lead to more stringent rules for its services but shows regulatory cooperation.
Google's compliance with the DMA may subject it to stricter regulations, especially as it operates the highest number of 'gatekeeper' services. The neutral score reflects the balance between regulatory pressure and positive market response to its 1.50% stock increase.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 80
NEUTRAL IMPACT
Meta Platforms is subject to the EU's DMA, which could influence its messaging services and app installation policies.
The DMA's requirements for messaging app interoperability and app installation choices may affect Meta's services, but the company's proactive compliance suggests a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Microsoft agrees to comply with the EU's DMA, which may require changes to its service operations but avoids legal disputes.
Compliance with the DMA indicates Microsoft's willingness to adapt to regulatory requirements, which could incur costs but also avoids legal confrontation. The impact is neutral as the market may have anticipated this move.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70