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EU cracks down on Big Tech with new antitrust law

European Union officials have agreed to the wording of a new law aimed at curbing powerful American tech giants like Meta-owned Facebook and Alphabet’s Google.

Approval of EU Digital Markets Act is pending. The law aims to prevent technology companies from holding online content exclusively.

The proposed law includes restrictions on collecting user data for the purpose of serving targeted advertising. This is the main source of income for Google and Facebook.

Large tech companies are also prohibited from forcing users to set products such as web browsers as default options.

Large companies also need to make sure that their products and services are “interoperable” with the products of their competitors.

This opens up the possibility for Telegram or Signal users to exchange messages with WhatsApp users, for example. WhatsApp is owned by Facebook’s parent company, Meta.

The proposed regulations are aimed at preventing tech giants like Mark Zuckerberg from gaining monopoly power.
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The new rule, which will come into effect in October this year, applies to companies with a market capitalization of at least $ 83 billion and a monthly user base of at least 45 million in the European Union.

Companies that violate regulations may have to pay large fines equivalent to 10% of global revenue. Companies that violate the law may also be forced to sell some of their assets.

The proposed bill must be formally adopted by the European Parliament and 27 EU member states before the bill can be passed.

Europe is more than in recent years More aggressive than the United States Under big tech regulations Public opinion in the United States has changed Congress and others Regulators are increasingly scrutinizing Silicon Valley companies..

Technology companies like Google, run by Alphabet Inc. CEO Sundar Pichai, have been accused of abusing power to beat the competition.
Technology companies like Google, run by Alphabet Inc. CEO Sundar Pichai, have been accused of abusing power to beat the competition.
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“What we’ve learned in the last few years is that we can fix it in certain cases and punish illegal activities,” EU Chief Competition Officer Marguerite Vestager told reporters Friday. ..

“But when things get systematic, we also need regulation, because if there is systematic misconduct, and if we have a well-established position, we need regulation.”

“For companies acting as gatekeepers, the Digital Markets Act has set the rules for the game.”

Apple is concerned that some of the Digital Markets Act “creates unnecessary privacy and security vulnerabilities for users, while others ban the claims of intellectual property that we invest heavily”. Said that.

Companies like Apple, run by CEO Tim Cook, need to manufacture their products. "Interoperable" With the services of competitors, according to the proposed regulations.
Companies like Apple, run by CEO Tim Cook, need to make their products “interoperable” with competitors’ services in accordance with the proposed regulations.
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Google said it would study the text and work with regulators to implement it.

“We support many of DMA’s ambitions for consumer choice and interoperability, but we are concerned that some rules may reduce innovation and choices available to Europeans,” the company said. Says.

Amazon said it is considering what the rules mean to its customers. Facebook did not respond to the request for comment.

With post wire

EU cracks down on Big Tech with new antitrust law

Source link EU cracks down on Big Tech with new antitrust law

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