EU seeks new powers to police technology giants in Europe
The European Union is seeking new powers to police and penalize technology giants, like Apple, if their market dominance appears to threaten consumers or smaller rivals.
Credit: Reuters
In recent years, the EU has stepped up efforts to curb the power of tech giants. In July, the EU announced plans to impose new tax, privacy, and online content rules.
Now, Brussels is seeking new powers to take on tech giants, including the ability to compel tech giants to break up, sell their European operations, or exclude companies from a single market altogether, The Financial Times reported on Monday.
Additionally, the EU is also mulling a rating system that could allow stakeholders and the public to assess a tech giant's behavior in areas such as tax compliance and the speed at which they take down questionable content.
EU commissioner Thierry Breton, who is spearheading the new rules, told FT that some of those powers would only be reserved for extreme circumstances. His comments follow public review of the EU's announced Digital Services Act.
"There is a feeling from end users of these platforms that they are too big to care," Breton said, adding that in some circumstances they "may also have the power to impose structural separation."
Regulators in Europe are drawing up a "blacklist" of activities that technology companies would be required to stop, as well as a "sliding scale" of penalties for non-compliance. Some of the antitrust rules include policies that prevent users from switching platforms, or systems that force users to rely on a single service.
However, Breton added that companies will retain limited liability for content posted on their platforms, adding that the rule is "something that's accepted by everyone."
Tech companies have come under scrutiny elsewhere in the world, too. The UK recently created a regulatory body that can impose fines without going through the court. In the U.S., the House Judiciary Committee is in the midst of wrapping up a yearlong antitrust investigation.
The EU commissioner said that draft legislation of the new rules would be ready by the end of 2020. Once the proposals are finished, they'll go through the European Parliament and the EU Council.
Credit: Reuters
In recent years, the EU has stepped up efforts to curb the power of tech giants. In July, the EU announced plans to impose new tax, privacy, and online content rules.
Now, Brussels is seeking new powers to take on tech giants, including the ability to compel tech giants to break up, sell their European operations, or exclude companies from a single market altogether, The Financial Times reported on Monday.
Additionally, the EU is also mulling a rating system that could allow stakeholders and the public to assess a tech giant's behavior in areas such as tax compliance and the speed at which they take down questionable content.
EU commissioner Thierry Breton, who is spearheading the new rules, told FT that some of those powers would only be reserved for extreme circumstances. His comments follow public review of the EU's announced Digital Services Act.
"There is a feeling from end users of these platforms that they are too big to care," Breton said, adding that in some circumstances they "may also have the power to impose structural separation."
Regulators in Europe are drawing up a "blacklist" of activities that technology companies would be required to stop, as well as a "sliding scale" of penalties for non-compliance. Some of the antitrust rules include policies that prevent users from switching platforms, or systems that force users to rely on a single service.
However, Breton added that companies will retain limited liability for content posted on their platforms, adding that the rule is "something that's accepted by everyone."
Tech companies have come under scrutiny elsewhere in the world, too. The UK recently created a regulatory body that can impose fines without going through the court. In the U.S., the House Judiciary Committee is in the midst of wrapping up a yearlong antitrust investigation.
The EU commissioner said that draft legislation of the new rules would be ready by the end of 2020. Once the proposals are finished, they'll go through the European Parliament and the EU Council.
Comments
There is no micromanagement either. This is an extension of an Act which itself was intended to extend existing laws and practices to cover digital platforms which were nascent back then.
Everything will be similar to what is already applicable in the non-digital realm.
Another key aspect is that the EU wants to provide for situations so that new legislation is not necessary to be in place first, to be able to act as soon as complaints come in. That will make these processes far more agile if the proposals are approved and will force companies into far more stringent self regulation.
And never trust anyone who says that any of their views are "accepted by everyone."
That is where my comment on acting without legislation that specifically banned an activity came from.
The idea is that companies will all be subject to the same clear guidelines and should know very well what actions will not be permitted under any circumstances. By nature these activities will fall under a broadly defined umbrella.
It is a way of making it clear to companies that common sense will keep them out of trouble for the most part.
What I didn't see is anything remotely similar to making companies publish source code.
The thinking behind this proposal is actually something positive and for the benefit of digital consumers.
These forums are usually filled with people posting that they don't trust their government (eg, cryptography controls.) But there's nearly complete silence on this one. I'm usually the only person on the government's side, and today it's nearly the opposite. The EU is saying:
- "Everything we are doing is for the benefit of the digital consumer, including a new digital tax on all your digital transactions"
- "All content must be moderated by the companies who post users' content, and everything that's not true will be removed. This is good."
- "We are going to build a new bureaucracy for the purpose of controlling the Internet, but trust us, no bad will ever come of this"
- "Everything we publish will be clear, and our rules will be accepted by everyone."
- "If a company gets too big, that's evil, and we will break it up, but this is all good for consumers"
I just have one word to defend my position: "1984."Having said that, it should be noted that the digital economy has so far escaped the scrutiny that the 'real' economy is subject to, and I am not against looking into ways of regulating/restraining companies that disrupt the livelihoods and well-being of average citizens. Airbnb has savaged the housing markets in cities where there are acute shortages, and of course Zuck's Facebook., which doesn't need any explaining.
Under communism, taxes are irrelevant because the state has the right to take everything it wants, distributing back as it sees fit.
I'm curious what kinds of taxes you want. Income taxes? Sales taxes? At both state and federal levels? Should they be graduated/progressive or flat? Or do you want communism where there's no tax at all, and you can't keep anything for your own, because all property is owned by the state?
My questions are sincere. I just want to know what you want. There's no ridicule intended here.