Feature
Hardly a month goes by without the EU announcing a new complaint or fine against a big corporation operating in Europe. And more often than not, a U.S. big tech firm appears to be on the receiving end. While some might see today's $1.7 billion Adsense win for Google as a sign of things to come, make no mistake: the EU is prepared, more than ever, to take on monopolies and anti-competitive practices.
EU Is Targeting Big Tech. And Anyone Else That Breaks Laws
So is the EU targeting Big Tech? While a U.S. audience may perceive it that way, it isn't the case.
The EU has codified regulations around the protection of privacy, about market competition and domination and what it believes are the rights of individuals in respect of companies that often appear to act with impunity and ignore national and trans-national law. It has sanctioned other, non-American corporations on these matters. It's even held the European Commission to account, issuing a reprimand in March for its using Microsoft 365 without performing proper oversight into the data transfers outside of the EU.
Activities in the tech space have aggravated these concerns, such as Microsoft's entering a "multi-year partnership" in February with French company Mistral AI, which would allow the latter to use Microsoft platforms, including Azure AI.
Recent decisions show the EU's determination to act on what it sees as the interest of consumers. Earlier this month, for example, a top EU court ordered Apple to pay €13 billion in back taxes to Ireland. Brussels also fined Google $2.7 billion over a case that began seven years ago, accusing the company of prioritizing its own shopping search results.
These rulings strike a blow to the dominance of major tech firms in Europe and represent a significant win for the bloc’s regulators, who at the beginning of March were given added muscle when the Digital Markets Act also entered into force. It requires so-called “gatekeeper” companies, including Apple, Google, Microsoft, TikTok and Meta, which owns Facebook and Instagram, to open up their platforms and services to other businesses.
Related Article: Why Tech Companies Will Likely Ignore the EU's AI Act
The Fallout From the EU Microsoft 365 Decision
The most important ruling for the digital workplace was arguably last September's Teams decision, which forced Microsoft to unbundle Teams from Microsoft 365 following a complaint made by Slack.
Attract Group CEO Vladimir Terekhov believes the long-term impact of the Microsoft 365 decision will push organizations using the service to reassess their data processing practices to ensure compliance. They might need to seek alternative solutions or demand that Microsoft make further changes to comply with EU regulations.
However, there's been no indication or statements from companies that suggest this is happening.
The problem, ProAI founder Chase Hughes said, is that compliance initiatives require that companies carry out several adjustments that affect corporate activities as well as interactions between employees. Companies should move the resources they had set aside for regulatory compliance to product development or other company activities, which may affect workflow as it is here that compliance is best felt.
In fact, adherence to the EU directives could lead to the restructuring of platforms, which may alter user experience and application performance. Furthermore, an increased push for better security and data protection attributes will in turn reshape the digital sector.
In the U.S. itself, though, it is unlikely to result in any changes. Although the EU is at the forefront of tech regulation, regulation in the U.S. has been spotty and met with great resistance. Federal Trade Commission chair Lina Khan has vowed to take on big tech companies, and started with a landmark case against Google. However her tenure, and her efforts, are vulnerable to the caprices of politics.
Related Article: Microsoft Unbundles Teams From Microsoft 365 Globally. What It Means for the Digital Workplace
Will EU Decisions Force Workplace Changes?
Speechgen.io's Alex Gen believes that significant changes are on the way for the workplace. Companies will likely be obliged to adopt a broader range of tools instead of relying on a single provider's ecosystem, to achieve business goals. "This diversification will lead to innovation but also to some initial confusion as employees navigate multiple platforms."
Other tools and applications that could feel the heat include cloud services, CRM systems and even email platforms. Salesforce, Dropbox and Gmail may also come under scrutiny if they're perceived as too dominant or stifling competition. "It's not far-fetched to think that similar regulations could cross the pond to the U.S., especially given the ongoing debates around Big Tech's power," he said.
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"In my view, these measures are a double-edged sword. They challenge Big Tech's status quo, encouraging more innovation and fairness in the market. However, companies need to stay agile, adapting to these changes without losing focus on their core mission to innovate and serve their customers," he added.