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- Is it Game Over for the Tech Monopoly?

Is it Game Over for the Tech Monopoly?

So, what is a Tech Monopoly?

Well, the EU has just finished negotiations on a new proposed law, the Digital Markets Act (DMA) which could bring massive changes to the biggest companies in the Tech Industry and provide a wealth of new options for our Yellow Cherry clients. These large companies (and by large we mean companies with an annual turnover of €6.5 billion+, just pocket money really…) are often referred to as gatekeepers. These gatekeepers can currently limit options for small businesses but with the introduction of the DMA this would mean smaller businesses and innovators would have the opportunity to compete fairly without the necessity to comply with same terms and conditions as the gatekeepers. This would result in more businesses growing and expanding  in a safer online environment. It also means that consumers will have more opportunities to switch providers and have, dare we say it, a better range of services to choose from.

How will it actually benefit me?

The benefits for end-users are

  • Device Neutrality – How often have you got a new phone that already has a number of apps installed that you will never use? The stock market apps, steps counters, sleep sounds app you don’t want,  but low and behold, you can’t delete it. Well, with the DMA, those apps could be removed in seconds! Yay, I hear you rejoice. Well, there is more!  You may also get the ability to install apps from sources other than the official app store for your device. This would also apply to desktops and laptops, so you could also remove all that so-called “Bloatware” which comes pre-installed with most Operating Systems these days, freeing your system up for the software you actually want and need.
  • Better interoperability–  Imagine a world where Android and iOS phones work together in harmony. With the DMA, the world is your (i)oyster. One possible example could be exporting “iMessage” to include non-iOS phones. At Yellow Cherry, we are excited about the opportunities this will give us in advancing our app development , enabling us to offer more complex, integrated solutions to clients
  • Restriction on the re-use of Personal Data – Companies that have multiple smaller companies (like Meta & Whatsapp) will not be able to use user information taken from one company and use it in another connected company. This is so important to Yellow Cherry, we take our customer privacy extremely seriously and all of our websites are built with security and privacy in mind. Exciting times for user privacy and protection, this law could prove to be as fundamental as GDPR was just a few years ago.

How will it benefit my business opportunities?

    • Independent verification of ads  – Gatekeepers would be required to provide tools to show how impactful an ad campaign is within an app. This would benefit Yellow Cherry clients greatly as we would be able to generate  more accurate and detailed  reports to make marketing recommendations.
    • Independent Payment Processors – Currently, you are forced to use a specific payment processor if you plan to take transactions over a phone app. However, this is often subject to high fees , not always sustainable for a small business. For example, Apple currently takes a 27% commission per transaction, (hence the £6.5 billion+ profit…). With the opportunity to use different options with different fees, it opens the way to much cheaper rates and better reporting tools. This means we would soon be able to offer a wide range of payment processors when integrating e-commerce into your app.
    • Ranking – Gatekeepers will no longer be able to promote their own products and services more favorably in ranking over similar services and products offered by 3rd parties on their platforms. Let’s get your business to the top!

In summary,  the Digital Market Act is clear on ensuring a fair and open digital market, better protecting small businesses and consumers with the ban of unfair practices and giving opportunities for better services and lower prices. If you are worried about the gatekeepers not complying, don’t be, they potentially face fines of up to 10% of their total world wide annual turnover if they don’t!

If you’re as excited about these changes as we are then get in contact today and let us help build your perfect app!