Brussels (Reuters) – The Amazon, Apple, Facebook and Alphabet divisions may have to change their business practices in Europe or face new fines of up to 6-10% under EU rules, which will be announced on Tuesday.
These rules are the most serious efforts of the 27-nation camp to control the power of American technology companies to control the data and online sites on which thousands of companies and millions of Europeans depend.
They also point to the European Commission’s frustration with its distrustful lawsuits against technology companies, especially Google, which critics say did not solve the problem.
There is a growing worldwide regulatory study of technology giants and their power.
European Competitiveness Commissioner Margaret Wester and EU Domestic Market Commissioner Theory Breton will present these rules in an attempt not only to control technology companies, but also to prevent the emergence of anti-competitive dominant companies.
A rule called the Digital Markets Act requires online gateway guards to be fined up to 10% of annual turnover, someone familiar with the matter told Reuters.
It also sets a list of do’s and don’ts for gatekeepers, which will be categorized according to criteria such as the number of users, revenue and the number of markets in which they operate, other sources said.
The second provision, known as the Digital Services Act, also targets the largest online sites with more than 45 million users.
They will have to do more to deal with illegal content on their sites, such as the misuse of sites that infringe on fundamental rights and the deliberate manipulation of sites that could affect elections and public health.
Companies are required to display details of political advertising on their sites and the parameters used by their methods to recommend and rank information.
The draft rules have to be reconciled with the demands of EU countries and EU lawmakers, some of whom are pushing for tougher laws, while others are concerned about the impact of regulation and innovation.
Technology companies that have called for proportional and consistent legislation are expected to take advantage of this split in the lobby for weaker rules, with a final draft expected in the coming months or even years.
Fu Yun Sea Report; Editing by David Gregorio