EU moves to rein in tech giants with threat of fines and break-up

Tech Titans

US tech businesses including Amazon, Apple, Facebook, and Google face penalties of up to 10% of the annual turnover and might even be forced to divide beneath draft European Union rules announced on Tuesday aimed at controlling their powers.

The principles are the most serious attempt by the 27-country bloc to tame technology businesses which control troves of data and online platforms relied on by thousands of organizations and millions of Europeans for their own work and societal interactions.

They also indicate the European Commission’s frustration with its antitrust cases against the tech giants, notably Google, that critics state failed to deal with problem.

Regulatory scrutiny has been growing worldwide of tech giants and their electricity following a string of scandals over privacy and misinformation.

1 set of principles, the Digital Markets Act, calls for fines up to 10% of annual worldwide turnover for so-called online gatekeepers which don’t comply with the rules as well as a break-up sequence as a last resort.

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Additionally, it sets out a list of do’s and don’ts for gatekeepers, defined as firms with an entrenched position, a significant impact on the EU market and with a heart platform support that is an important gateway to consumers.

They will also be asked to report merger bids into the government, a move directed at preventing acquisitions which kill rival companies.

The next set of principles, the Digital Services Act, additionally targets very large online platforms, like the ones with over 45 million users.

They will be asked to do more to tackle illegal content, misuses of the platforms which infringe basic rights and deliberate manipulation of platforms to influence elections and public health, among other requirements.

The businesses will also have to show details of political advertising in their platforms and the parameters employed by their own algorithms to suggest and position information.

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The draft rules have to be approved by EU states and EU lawmakers, some of which have pushed for tougher legislation, while others are worried about regulatory over-reach along with the effect on innovation.

Tech businesses, that were predicted for balanced laws, are anticipated to take advantage of the divide to lobby for weaker rules, together with the final draft expected in the coming months or several years.

Differences between the tech giants could dilute the opposition. Facebook for one has urged the EU to rein in Apple.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Foo Yun Chee. Additional reporting by Marine Strauss. Editing by David Gregorio and Mark Potter.

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