Summary
- Smaller web browsers are thriving in the EU thanks to the DMA’s choice screens.
- Some lesser-known browsers have seen as much as a 250% increase since the DMA was implemented in March.
- The US has yet to implement similar policies, but users in that market could still benefit from ripple effects caused by the EU’s DMA.
In the past few years, the European Union has tightened its grip on Big Tech companies to break their reign and create a better chance of competing for smaller businesses. The Digital Markets Act (DMA) that took effect on March 7 is the EU’s main weapon against anti-competitive practices by trillion-dollar firms. While there was a lot of skepticism about the effectiveness of DMA at first, it turns out that the DMA rules on the web browser market are working, creating hope for smaller browsers to gain more users.
Google is asking users how they want their data shared ahead of DMA deadline
A new on-device banner is appearing to people in the EU
The data provided to Reuters by six small web browser companies indicates that following the implementation of DMA, more users are turning to their browser apps for daily internet browsing. As part of new EU legislation, Google, Apple, and Microsoft, which hold the largest shares in the web browser market, must allow users to migrate to rival apps by selecting from a list, dubbed the “Choice screen.”
The privacy-focused Aloha Browser saw a 250 percent increase in its EU user base in March, reaching 10 million monthly average users. According to Aloha CEO Andrew Frost Moroz, the EU has now become their second-largest market. Similarly, Brave, Vivaldi, and Ecosia have gained significant traction among EU users. DuckDuckGo and Norway-based Opera are also seeing a spike in the number of users coming from the EU.
Smaller web browsers are gaining more traction in the EU
As you know, Chrome and Safari browsers come pre-installed on every device you buy from Google and Apple. This simple practice allows these companies to gain more users and limits the space for smaller rival apps to compete. However, in the EU, this is going to change thanks to the DMA and choice screens.
Accordingly, mobile software makers, including Google and Apple, must let users select their favorite browser, search engine, and virtual assistant once they set up their devices. Previously, users needed to go through the setting options to apply any change to their default apps list.
Now, Apple shows 11 browser choices for its EU users. As for Google, it’s showing multiple browser options on Pixel devices, adding that new Android devices made by other companies will also offer the choice screen in the upcoming months.
Big-name browsers like Safari and Chrome are facing increased competition in the EU
What do the EU’s default browser rules mean for the US?
So far, the EU has identified Apple, Alphabet, Meta, Amazon, and Microsoft as gatekeepers, meaning their platforms have at least 45 million monthly active users in the EU and a market cap exceeding 75 billion euros ($81.7 billion). The only non-US company on the EU’s gatekeepers list is TikTok’s parent company, ByteDance. Companies that violate DMA rules could face a fine of up to 10% of their global annual revenue.
The DMA rules will only apply to companies operating in all 27 countries across the EU. As for the US market, the so-called gatekeeper companies must follow the federal laws and legislation passed by the Senate or Congress. Truth be told, the United States is still far behind the EU in terms of breaking the Big Tech monopoly and enacting legislation similar to DMA.
Meanwhile, EU DMA rules could have ripple effects for US customers. For example, the EU’s push for a unified charging port prompted Apple to switch from a Lightning port to USB-C on the iPhone 15 series. While the change was intended for EU customers, it impacted all Apple customers globally, including the United States.
