In his capacity as a Columnist for California Sports Lawyer®, Founder Jeremy Evans has written a column about tech business strategies with legal and legislative changes occurring attempting to break down existing processes and monopolies.
You can read the full column below.
In the United States, Google is facing charges for monopolistic and antitrust behavior. Other tech giants have faced similar concerns or at least legal experts have expressed concern that they could soon be in Google’s proverbial shoes. Tech giants in their overseas business have more quickly faced antitrust lawsuits and/or legislation that challenges their dominance.
Several years ago, Europe passed robust privacy laws restricting the ways and means that tech giants, known for the advertising prowess, could collect, sell, use, and distribute data. California and other states soon followed suit. Some companies have sworn-off using cookies to tract personal data of their users.
Europe is now taking regulation a step further with the Digital Markets Act (“DMA”). The DMA will require Apple to allow competitive (non-Apple marketplace) downloads and payments. One might recall Apple settled a lawsuit after losing in court to allow payments on competitor applications.
The DMA also requires users to opt-in to data collection across multiple platforms owned by one company (e.g., Google search-YouTube, Meta-Instagram-Facebook). Amazon will not be able to collect user data from its outside sellers where competing products are offered. Furthermore, there will be expensive fines for violations of the DMA.
The inability or additional requirements to collect data may slow business down. It may also increase competitors in the tech, advertising, and data space. Consumers will encounter additional disclosures when signing onto or using platforms to search, view, and conduct business.
The additional costs to implement the changes pursuant to the DMA will be substantial. The benefit is that consumers have more say in how their personal data is collected and used. It also provides the pathway for consumers to have more choice in who they use to search, view, and conduct business.
Tech giants will likely be in a similar circumstance as they were with the passage and implementation of the General Data Protection Regulation (GDPA) in Europe. Setting up new systems and responsibilities. These challenges will take time and money.
Tech giants will have to change their strategy once again to reach consumers efficiently. One way will be through passive costs—placing the cost increase on the consumer to provide for the additional legal protections. Tech giants could also begin to charge for things that were once free (YouTube, social media, and internet searches). The business model is already in play as to charging for premium or non-advertising content. The last option is or should be a legitimate worry for consumers. Regulation also threatens to challenge to the golden age of content distribution by slowing down how content is consumed and for how much.
Regulation will surely change content consumption. Whether for the better is yet to be seen. Europe’s changes only apply in Europe for now. California may be next to consider such legislation short of litigation.
About Jeremy M. Evans:
Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clientele in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.
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