The EU has made plans to release tough drafts rules, aimed at tech giants like Facebook, Google and Amazon. The European Union put forth some proposals which can change the way these big tech companies carry out their businesses. It will threaten some of the biggest firms on earth today, with massive fines, or even bans. And it will be straight from the European market.
This is why
Apparently, these big tech companies broke some of the most serious competition rules. This offense drew the attention of the European Union. The EU told AFP they will face fines of up to 10 percent of their EU turnover, by the long-trailed legislation. They also intend to ban the tech giants from the EU market. One of their sources said, “In the event of serious and repeated breaches of law which endanger the security of European citizens.”
Strict conditions for doing any business in the EU’s 27-member countries is coming. The Digital Services Act, alongside its following Digital Markets Act, will see to it. This exercise will restrain the spread of false information and hate speech on the internet. But it will also help the European Union curb the dominance of the tech giants.
About ten of these big companies, such as Apple. Amazon, Facebook, and Google, will be assigned as the gatekeepers of the internet, under the legislation. They will also be subjected to specific rules and regulations, designed to restrain their power on the market. Which will not be easy to pull this off. The proposals are expected to be dragged through a long process. It will involve the European Union’s 27 states, the Parliament, angry companies and trade associations, all of which influences the final law.
The European Union’s Idea
“The idea is not to do away with the large platforms, but to impose rules on them. To prevent them from posing risks to our democracy.”
Although someone leaked some parts of the proposal, the European Commission still guards the remaining details. Countries like France and the Netherlands have come forth to support the European Union, having everything it takes to implement their new regulations, and even the power the break the big companies.
They created the new rules with the primary purpose of updating legislation as old as 2004—this is a time when many of the tech giants reigning today did not even exist.
The European Union has taken the lead around the world, for the past decade, as they try to contend with the power of the big tech. For instance, charging Google billions in antitrust fines. However, some people have said the EU’s method hasn’t been quite effective in changing their behavior. The European Union went on to charge Apple billions of euros in back taxes. Although, the EU’s highest court eliminated that decision.