EU To Curb Tech Giants Power
By Stefan J. Bos, Special Correspondent Worthy News
(Worthy News) – The European Union wants to curb the market dominance of tech giants with regulations and multi-billion-dollar fines, according to draft legislation leaked late Monday.
The Digital Markets Act, obtained by Worthy News, suggests that tech giants like Amazon, Apple, Facebook, and Alphabet unit of Google could be fined at least six percent of their annual turnover.
“Member States” of the 27-nation EU “shall ensure that the maximum amount of penalties imposed for a failure to comply with the obligations laid down in this Regulation,” the draft says. The fine “shall not exceed 6 percent of the annual income or turnover of the provider of intermediary services.”
The proposed rules will be announced by EU digital chief Thierry Breton and EU antitrust czar Margrethe Vestager on Tuesday. Their plans come amid EU concerns about tech giants’ influence over information, advertisements, business, and people’s everyday lives.
The Digital Markets Act, published by the European Commission, the EU’s executive, sets out dos and don’ts for tech giants. The Commission wants to decrease their market dominance and ensure a level playing field for rivals and users.
This could include requiring tech companies to share certain kinds of data with rivals and regulators. Practices such as firms favoring their services could be outlawed.
The biggest companies are designated internet “gatekeepers” in the legislation. They will be subject to regulations to limit their power over the market. Some ten firms — including Google, Facebook, Apple, Amazon, and Microsoft — will receive the designation.
Breton has reportedly said that online gatekeepers can be ordered to change their practices or even be forced to break up their European businesses for repeated breaches of the rules.
But the draft law will go through a long and complicated ratification process. The EU’s member states, the European Parliament, lobbyists, and trade associations may impact the final legislation.
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