According to several media reports on Monday, the European Union is set to release a landmark law that will lay down stricter rules for technology companies to trade.
The draft law, known as the Digital Services Act and the Digital Markets Act, outlines specific rules that seek to reduce the power of global Internet companies in the EU market.
Violations of the rules, including by Google, Apple, Amazon, Facebook and other companies, may result in fines.
The milestone draft law is due to be submitted on Tuesday.
What is in the draft law?
EU sources told news agencies Reuters and AFP that the draft law sets out a list of do’s and don’ts and penalties for Internet companies.
- Violation of competition rules can result in fines of up to 10% of companies’ annual revenue.
- Technology companies can be completely barred from the EU market in connection with “serious and persistent violations of the law”.
- Large technology companies will be designated as Internet “gatekeepers” – subject to strict regulations.
- Companies must notify the EU prior to any planned mergers or acquisitions.
- Some types of data need to be shared with controllers and competitors.
- Companies that support their own services are illegal.
Controllers handling the Big Deck
European and US regulators are increasingly concerned about the business and user data practices of technology companies – especially companies that buy other companies to eliminate potential competitors.
Some recent examples include the acquisition of the Facebook news service WhatsApp and the social media company Instagram. The purchase of Google YouTube and GPS Navigator Vase also raised alarm among regulators.
Facebook and other companies have warned that the move could push the company out of Europe, which could cost jobs and block access to its site for EU users.
Last week, the U.S. Federal Trade Commission (FDC) and 48 states filed no-confidence lawsuits against Facebook. The FDC also filed a separate lawsuit to force Facebook to sell Instagram and WhatsApp.
In November, the European Union accused Amazon of violating its competition law.
What happens next?
EU hopeless Tsar Margaret Vestager and EU digital leader Theory Breton were due to present the draft law on Tuesday.
The text can be changed before that, so it remains to be seen which rules will cause the final reduction.
The main purpose of the law is to update the camp’s outdated law since 2004.
The draft still faces a lengthy approval process – including comments from 27 EU member states and the European Parliament. Corporate lobbyists and trade associations will also affect the final law.
rs / rc (AFP, Reuters)