(Technology News) – US and other major tech platforms that treat their own services more favourably. Especially at the expense of rivals, strict rules unveiled by the EU will force them to sell businesses and pay billion-dollar fines.
eu’s new regulations
Under the EU’s new Digital Markets Act, ‘Gatekeeper’ companies cannot rank their offerings above rivals on their own platforms. Nor can they use competitors’ data to compete with them, consistent with the new regulation released on Tuesday.
The commission refuses to list companies that might be deemed gatekeepers. However, an interior review published separately on Tuesday showed an inventory of unfair practices. This is based both on antitrust investigations and complaints raised by interviewees responding to the EU’s survey.
The study lists, among others, unfair contract terms by Apple with its app store and by Booking.com, furthermore as anti-competitive use of third party data by Amazon in its marketplace. It also flags Apple, Amazon and Booking as charging potentially excessive commissions.
potential fines and punishment
Companies like Amazon.com Inc, Apple Inc. or Alphabet Inc.’s Google could face fines of the maximum amount as 10% of their revenue in Europe if they don’t comply. An organization that has repeatedly breached the principles could face orders to divest businesses, confirms a Bloomberg report on Monday. Gatekeepers need to inform regulators about smaller acquisitions that will otherwise fall below traditional merger review thresholds.
The separate Digital Services Act could also foresee fines as high as 6% of revenue for social media platforms. That is, if they don’t adjust to orders to get rid of terror propaganda or other illegal posts. Adding together with other obligations like finishing up reviews of systemic risks to their sites. The UK, which left the bloc earlier this year, also announced similar rules on Tuesday.
The regulations are a number of the strictest set of technology rules the EU proposes. The reason being to quash bad behavior by powerful platforms that as pose a threat to the bloc’s society and economic markets.
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