The EU’s tech crackdown: Privacy, competition, and the future of big tech

The European Union has taken a firm stance on regulating Big Tech, aiming to protect user privacy, promote fair competition, and ensure greater consumer rights. Landmark regulations like the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA) have already forced major companies like Apple, Meta, Google, and Microsoft to adjust their business practices in the region.

While these laws have led to increased privacy protections and competitive digital markets, they have also created new challenges, such as restricted product features, compliance burdens, and legal disputes. This article explores the impact of these sweeping regulations on consumers, businesses, and the global tech industry.

The GDPR and its impact on big tech

Introduced in 2018, the GDPR was designed to give EU citizens greater control over their personal data. Under the law, companies must obtain explicit user consent before collecting or processing data, notify users of breaches, and grant them the “right to be forgotten”—allowing individuals to request the deletion of their personal information.

Major GDPR enforcement actions

The GDPR has led to billions in fines against tech companies for data privacy violations. Some of the most significant cases include the following.

Meta ($1.3 billion fine in 2023): The Irish Data Protection Commission (DPC) penalized Meta for transferring EU user data to the United States, violating European privacy standards. The company was ordered to suspend future data transfers and align its operations with GDPR rules.

TikTok ($375 million fine in 2023): The platform was found guilty of inadequate privacy controls for minors, allowing children’s accounts to be public by default and failing to properly secure their personal information.

Uber ($315 million fine in 2024): Dutch regulators fined the ride-hailing giant for not implementing sufficient privacy safeguards when transferring drivers’ data outside the EU.

These enforcement actions highlight the EU’s commitment to strict data protection. While these regulations offer increased security and transparency for consumers, they have also created compliance challenges for businesses operating in the region.

Digital markets act: Reshaping tech competition

The Digital Markets Act (DMA), which took effect in 2023, focuses on breaking up monopolistic control in the digital economy by regulating “gatekeepers”, large tech firms that act as intermediaries between businesses and consumers. The law targets companies like Apple, Google, Amazon, Meta, Microsoft, and ByteDance (TikTok’s parent company) and imposes strict rules to prevent anti-competitive behavior.

How the DMA is changing the digital Market

One of the biggest shifts introduced by the DMA is requiring interoperability, meaning platforms must allow users to install apps or services from outside their ecosystems. This particularly affects Apple, which has historically restricted app installations to its own App Store—where it charges developers up to 30% in commission fees. Under the new rules, EU users can now download apps from alternative sources, potentially reducing software costs and increasing consumer choice.

However, Apple and other companies have expressed concerns that these changes may compromise user security and privacy. Apple has even opted not to launch certain AI-powered features of its iPhone 16 in the EU, citing regulatory uncertainty.

Another controversial aspect of the DMA is its impact on Meta’s business model. The company recently introduced a “pay or consent” model for Facebook and Instagram, forcing EU users to either pay for a subscription to access ad-free versions of the apps or consent to data tracking so Meta can serve personalized ads.

In July 2024, the European Commission ruled this model violated the DMA, stating that users must be able to freely consent to data collection without coercion. This ruling signals stricter limits on ad-based revenue models, potentially pushing companies to find alternative ways to monetize their platforms.

How EU regulations compare to the U.S. approach

While the EU has enforced sweeping regulations on Big Tech, the U.S. has taken a more fragmented approach to data protection and competition laws.

Privacy laws: A state-by-state patchwork

Unlike the General Data Protection Regulation (GDPR), which applies uniformly across all 27 EU member states, the United States lacks a federal data protection law. Instead, individual states have introduced their own privacy regulations to address data security concerns.

One of the most notable laws is the California Consumer Privacy Act (CCPA), enacted in 2020, which grants residents rights similar to those under the GDPR. These include the ability to request access to their data and opt out of the sale of their personal information. Similarly, the Virginia Consumer Data Protection Act (VCDPA), introduced in 2023, establishes new consumer rights over data usage but is considered weaker in enforcement compared to the GDPR.

Efforts to create a nationwide privacy framework have gained momentum with the proposed American Privacy Rights Act (APRA), expected in 2024. If passed, this bill would mark the first comprehensive federal data protection law in the U.S., standardizing regulations across all states.

Public opinion strongly favors stricter data privacy regulations. A 2023 Pew Research survey found that 72% of Americans support increased oversight of how companies handle personal data. However, business leaders continue to push back, arguing that rigid privacy laws could stifle innovation and create compliance burdens for companies operating in the digital economy.

Regulating competition in digital markets

Unlike the DMA, the U.S. has not enacted a comprehensive antitrust law targeting Big Tech. Instead, regulators like the Federal Trade Commission (FTC) and the Department of Justice (DOJ) have launched individual lawsuits against major tech firms.

For example, the DOJ sued Google in 2023, alleging that its search engine monopoly harms consumers and advertisers by stifling competition. Similarly, FTC lawsuits against Meta have sought to block acquisitions that could eliminate competitors.

While these legal battles reflect growing antitrust concerns, they lack the broad regulatory scope of the EU’s DMA. As a result, the U.S. tech market remains more loosely regulated than its European counterpart.

The future of big tech regulation and telemedicine

As governments worldwide grapple with the balance between innovation, competition, and privacy, the debate over how far tech regulation should go continues.

Telemedicine regulations in South America

Beyond the EU and U.S., regulatory frameworks for digital health services are also evolving. Telemedicine regulations in South America have been a growing focus, as countries attempt to balance accessibility with data privacy.

Brazil has implemented strict data protection rules similar to GDPR, ensuring patient data remains confidential in telemedicine consultations. Argentina has standardized telehealth laws across provinces, aiming for equal access to digital healthcare. Colombia has embraced telemedicine expansion, allowing cross-border consultations while ensuring compliance with national health regulations.

Outside South America, telemedicine regulations continue to evolve worldwide. The growing demand for remote healthcare has pushed policymakers to create clear guidelines on data security, licensing, and cross-border consultations. While these laws aim to protect patient information, they also challenge healthcare providers and tech companies to navigate complex legal frameworks.

A more regulated future for digital platforms

While critics argue that excessive regulation stifles innovation, supporters believe it is essential for protecting consumer rights in an increasingly data-driven world. With more legal scrutiny, transparency requirements, and user protections, the freewheeling era of Big Tech dominance is rapidly evolving into a more regulated digital economy.

As regulatory frameworks continue to evolve, businesses, policymakers, and consumers will need to navigate the shifting landscape of digital governance—one where privacy, competition, and telemedicine regulations must coexist.