The EU is about to launch a series of new policy plans that could have serious implications for tech giants like
Apple, Facebook, and Google.
Officials have made suggestions for the Law on Digital Services and the Law on Digital Markets, which could force large companies to take more responsibility for the content on their websites., ban them from taking anti-competitive actions – and threaten multi-billion dollar fines.
Big Tech is pushing back against the legislation, with five of the biggest players have spent more than $ 20 million on lobbying efforts in the EU, reports say.
We broke everything we know in the next announcements, expected for Tuesday.
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The EU is set to unveil a raft of new policy proposals designed to curb the influence of the likes of Amazon, Apple, and Facebook this week, following a decade of scandals, antitrust investigations, and growing scrutiny across the continent.
After a week of delay, European legislators are expected to unveil the Digital Services Act (DSA) and the Digital Markets Act (DMA) on Tuesday. While the content of either is yet to be officially confirmed, reports suggest both could have serious consequences for the world’s biggest tech companies.
“The Commission has kept its letters close to its chest on this one,” Raegan MacDonald, head of EU public policy at Mozilla, told Business Insider. We are all eager to know exactly what the letter of the law is. ”
Although there is a way to go before the DSA or WFD is actually implemented, and experts predict another two years of debate between members of Parliament, the Commission, and the EU Council, lawmakers are expected to topple the gauntlet. with a bold mission statement. for the future of the Internet.
Everything we know about the Digital Services Act Amazon, Apple, Facebook, and Google all face tighter measures in the EU AP Photo / Charles Krupa / Karl Mondon / Digital Una / Yves Herman / Reuters / Chip Somodevilla / Getty Images
DSA is expected to demand that larger tech companies take greater responsibility for the content on its platforms, such as political information, illegal content, and the sale of counterfeit products.
Until now, tech companies like Facebook and Amazon have had the freedom to track their platforms at their own discretion. But the DSA can change all that.
Officials are clearly considering the imposition of a “two-tier” system, according to the Financial Times, which will see tech giants subject to greater scrutiny than their smaller competitors.
It’s thought these measures could be implemented based on how many EU customers a firm has, or how many of the bloc’s member states it operates in.
In order to get a better grip on “online harms”, experts suggest firms could be forced to be more transparent with how their algorithms recommend products and content.” I think legislators are actually analyzing how they can focus on the causes of these problems, instead of simply delivering them with symptoms,” says MacDonald.
According to leaked documents obtained by Reuters, “very large” online platforms will be defined as those having 45 million users or more in the EU and will face fines worth up to 6% of annual turnover if they breach the new rules. This goes even further than the current GDPR privacy regulation, which sets fines at 4% of turnover.
Furthermore, just as the GDPR requires companies to set up a point of contact, usually a designated data manager, insiders say companies like Google and Apple may be forced to assign individuals to oversee compliance with the DSA.
Everything we know about the Digital Market Law Brian Chesky, CEO of Airbnb, is displayed on an electronic screen on the Nasdaq marketplace site Mark Lennihan / AP
There’s one word on everyone’s lips when it comes to DMA: “Outpost.”
It is not clear exactly how a gatekeeper will be identified, although it is likely that it will be based on the number of users of a company and how many types of businesses it operates.
The classic example is Amazon, which simultaneously operates an online marketplace, while also acting as a retailer selling its own products within that marketplace.
The Wall Street Journal previously revealed how Amazon used seller data on its site to launch competing products. But the DMA could, for example, force Amazon to share the data it collects with sellers using its platform. Similarly, Airbnb may be prompted to share similar data with renters of properties on its site.
“Many companies rely on Amazon to reach their customer base,” explains MacDonald. “But the decisions that Amazon makes in the past can have many impacts on rivers. At the moment, there aren’t really any legislative levers for that.”
DMA is also expected to clamp “unfair self-preferences,” such as the initial installation of its own applications on its hardware products. For the past few years, Google has held quarterly auctions offering.
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