The Global Rise of Big Tech Regulation: Trends in the EU, UK and United States

What Is Happening?

The European Union

The European Union has introduced the Digital Markets Act (DMA), the most significant competition‑focused technology regulation since the General Data Protection Regulation. The DMA aims to ensure fair competition by preventing dominant firms from using their market position to restrict consumer choice or disadvantage smaller competitors.

The DMA designates six companies as "gatekeepers":

• Alphabet
• Amazon
• Apple
• ByteDance
• Meta
• Microsoft

Gatekeepers must comply with obligations designed to prevent anti‑competitive behaviour. Examples include restrictions on data collection practices and requirements to allow alternative app stores on certain devices. Breaches may result in fines of up to 10 per cent of global revenue, rising to 20 per cent for repeat violations.

The United States

The United States has seen a marked increase in antitrust investigations and litigation. The Department of Justice and the Federal Trade Commission (FTC) have pursued cases against several major firms, including Amazon and Google, alleging abuse of market power and anti‑competitive conduct.

The FTC's current leadership has prioritised enforcement in the technology sector. Recent actions include blocking mergers, challenging exclusive agreements and scrutinising digital advertising practices.

The United Kingdom

The UK has enacted the Digital Markets, Competition and Consumers Act (DMCC), described as the most significant competition legislation in two decades. Under the DMCC, the Competition and Markets Authority (CMA) may designate certain firms as having Strategic Market Status (SMS) if they hold entrenched market power and strategic significance in the digital economy.

SMS designation allows the CMA's Digital Markets Unit to impose tailored conduct requirements. Non‑compliance may result in fines of up to 10 per cent of global turnover.

Cross‑Border Cooperation

Regulators in the EU, UK and US increasingly coordinate investigations. Joint or parallel inquiries are becoming common, particularly in cases involving global firms. One example is the ongoing scrutiny of the relationship between Microsoft and OpenAI, which regulators in all three jurisdictions are examining simultaneously.

Why Is It Happening?

The regulatory shift stems from concerns that large technology companies have accumulated excessive market power and operated with insufficient oversight. Policymakers argue that regulators should regulate the sector similarly to other industries with significant societal impact, such as finance and healthcare.

Key concerns include:

• market concentration and barriers to entry
• data collection and privacy practices
• misinformation and content governance
• the impact of AI on competition and consumer protection

These issues have become politically salient across the ideological spectrum, driving broad support for stronger regulation.

How Has It Affected the Sector?

EU Enforcement

The DMA has already resulted in enforcement actions. In July 2024, regulators charged Meta over its "pay or consent" model for Facebook and Instagram, arguing that privacy should not depend on a user's ability to pay. Apple may be required to permit alternative app stores, potentially reducing fees for developers and increasing consumer choice.

US Enforcement

Regulatory activity has affected mergers and acquisitions. Alphabet abandoned its planned acquisition of Wiz following regulatory scrutiny. Google also lost a major antitrust case concerning its search engine practices, raising questions about potential structural remedies.

UK Enforcement

The DMCC has prompted firms to prepare for audits, investigations and potential conduct requirements. The CMA has signalled that only a small number of firms are likely to receive SMS designation, but those that do will face significant obligations.

What Do Firms Need to Do?

Preparing for Regulatory Engagement

Law firms and consultancies recommend that companies:

• prepare for audits and investigations under the DMCC and DMA
• build constructive relationships with regulators
• engage in structured dialogue to clarify regulatory expectations
• ensure product teams can rapidly implement mandated changes

Governance and Compliance

Companies may need to:

• strengthen internal compliance frameworks
• enhance transparency in data practices
• review merger strategies
• adapt business models to accommodate new conduct requirements

Effective regulatory engagement is increasingly viewed as essential to long‑term competitiveness.

Conclusion

Regulatory scrutiny of the technology sector is now a sustained trend across the EU, the UK, and the United States. Large technology firms must prepare for ongoing investigations, new conduct obligations and closer cross‑border cooperation among regulators. As governments seek to rebalance competition and consumer protection in the digital economy, regulatory compliance will become a central strategic priority for the sector.