Microsoft Corp (NASDAQ: MSFT) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google have decided not to contest a European Union regulation that mandates them to simplify the process for users to switch between rival services, including social media platforms and internet browsers.
The EU identified 22 "gatekeeper" services operated by six of the globe's largest technology companies to be subject to new regulations in September, Reuters reports.
The Digital Markets Act (DMA) obligates these designated gatekeepers to ensure that their messaging applications are compatible with their competitors. It permits users to choose which apps to pre-install on their devices.
The DMA will apply to services from Alphabet, Amazon.Com Inc (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Meta Platforms Inc (NASDAQ: META), Microsoft and TikTok owner ByteDance.
Those disagreeing have until November 16 to file a complaint to the Luxembourg-based General Court.
Google has the highest number of services, including its Android operating system, maps, and search, likely to face more stringent rules under the DMA.
Companies like Zalando (OTC: ZLNDY) and Amazon have challenged the Digital Services Act (DSA).
Price Action: GOOG shares traded higher by 1.50% at $135.65 on the last check Tuesday.