The EU appears to have decided on the yardsticks by which it will distinguish tech giants who have to comply with stricter legislation. The yardsticks are based on the number of users and the areas in which companies operate.

With the criteria, the EU wants to distinguish large technology companies that have to comply with the Digital Markets Act (DMA). The aim is not to identify specific companies, but companies such as Google, Facebook, Apple and Amazon are likely to be covered by the criteria. Such companies are regarded as ‘digital gatekeepers’.

Number of users and multiple areas

The number of people using a company’s services within Europe is one of the criteria that will be proposed. The exact number of users in this case not yet clear.

If a company has activities with two or more areas, such as search or online advertising, it must comply with the DMA as well. Companies that are active in only one area, but are dominant in that area, may also have to comply with the DMA after a qualitative analysis by the Commission.

The proposal does not specifically consider market share. It is considered a competition concept, whereas the DMA is based on EU internal market rules, Reuters writes.

Related: Should Europe compete for technological world domination?

Vestager

Commissioner Margrethe Vestager will officially present the new legislation to EU members on 15 December. This is expected to trigger lengthy negotiations between the EU and the US tech giants.

Tip: EU working on criteria to distinguish tech giants