EU Tech Chief: No Plans for Big Tech Compliance Fees

The EU’s tech chief stated there are no current plans to make major tech companies cover the costs of monitoring their compliance with the Digital Markets Act (DMA). Germany and EU lawmakers previously advocated for a supervisory fee to support antitrust regulators.

The European Commission has no current intention of requiring major tech companies, including Alphabet, Amazon, Apple, ByteDance, Meta Platforms, and Microsoft, to bear the costs associated with overseeing their adherence to the new Digital Markets Act (DMA). This was confirmed by European Commission Executive Vice-President Henna Virkkunen (pictured), who oversees the technology sector. Germany and lawmakers within the European Parliament had previously advocated for imposing a supervisory fee on these large tech firms. Their aim was to provide EU antitrust regulators with additional resources to more effectively enforce the DMA.

Background to the DMA

The DMA, which has been in effect since 2023, is a landmark piece of legislation. It outlines a comprehensive set of “dos and don’ts” designed to curtail the market power of these prominent companies. The regulation aims to foster greater competition and offer consumers a wider array of choices. The selected group of large tech companies, which also includes Booking.com, were designated due to their provision of core platform services to business users.

The Debate Over Fees

Proponents of a DMA supervisory fee suggested it should mirror the levy already imposed on major online platforms under a separate piece of legislation. This refers to the Digital Services Act (DSA), which mandates companies to more actively moderate content on their platforms. The digital services supervisory fee under the DSA amounts to 0.05% of a company’s annual worldwide net income. Despite the significant monitoring workload involved with the DMA, Virkkunen indicated that while rules are always under review, there are currently no new proposals to make companies directly fund the compliance oversight.

Looking Ahead

Virkkunen affirmed that while the possibility of such a fee always exists, the Commission is not presently considering any new proposals. She emphasized that the regulatory landscape is continuously monitored for developments. This statement comes amidst ongoing discussions about how best to ensure effective enforcement of digital regulations. The current approach relies on existing regulatory budgets rather than direct contributions from the regulated entities.

Additional Information

The Digital Markets Act and Digital Services Act represent a significant shift in how the European Union regulates the digital economy. While the DMA focuses on preventing anti-competitive practices by large “gatekeeper” platforms, the DSA primarily addresses content moderation, online safety, and transparency. The debate over who should bear the costs of regulatory oversight is not unique to the EU’s tech laws; similar discussions have occurred in other regulated sectors globally. The EU’s proactive stance in digital regulation often sets precedents that other jurisdictions consider adopting.