Europe is rewriting a book called Destiny for the Digital Age – TheMoneyOffice

Many of Silicon Valley’s largest companies may face blockbuster penalties under new EU measures aimed at increasing digital competition and protecting people from online losses.The declaration marks a diabetic moment known to “technical sovereignty”, or to Ursula van der Leen’s commission as part of efforts to strengthen the coalition’s role in digital markets, the central agenda of its legislative agenda is as.

Under these measures, known as the Digital Market Act and the Digital Services Act, large online sites such as Google, Amazon, and Facebook will face new limitations on how they can expand their online empires or levy taxes. can deal. This amounts to 10 percent of their global revenue – billions of euros – to unfairly upset small rivals.

In the worst cases, EU regulators would have the right to disband the companies that published the coalition’s new digital rulebook.Brussels announced separate fines of up to six percent of annual revenue for Big Tech companies – with at least 45 million users in 27 countries – failing to control the spread of illegal content, from hate speech to fake products To those who can spread on their network.

“Now that we have an increase in online traffic, we have to make rules that will cause chaos,” Margaret Westeger, executive vice president of the European Commission, told reporters on Tuesday. . “We go without facing a terrorist campaign and believe that the toy we buy online is safe, as well as the toy we buy at a brick and mortar shop.”

The plans have not yet become law. Europe’s national parliament and member states are now weighing in – there is no consensus about regulating technology companies – and final regulations are not expected before 2023. Determining which companies will dominate under the new EU rule – and hold them accountable for strict oversight. It takes years, and includes companies that challenge those decisions in EU courts.

Proponents of the new rules say the current system of policing in the online world is broken, and Silicon Valley is more about controlling the digital lives of people.BEUC chairman of the consumer group, Monique Cohens, said Brussels should stay away from restricted powers. Major online companies.

Opponents of the repeal law are wary that European actions, such as the camp’s efforts to keep pace with the US and China, could be detrimental to change.”We are concerned that it will be very difficult to develop new products to support small businesses in Europe, specifically targeting certain companies,” said Karan Patia, deputy head of government affairs and public policy.

However, Brussels is keen to develop its control muscles just like the rest of the world, particularly as the US – with local rival authorities recently filed separate lawsuits on Google and Facebook – populated Has started questioning the role of Silicon Valley. Everyday life.
French Commissioner Thierry Breton, who helped design the proposals on Tuesday and was a staunch critic of Big Tech, told reporters Tuesday about the giant digital player “no matter how big they are, they have to fulfill their obligations “. “It is our responsibility to determine the direction and policies that are important to our defense.”The Law in Digital Markets: Do’s and Don’tsThe focus of Europe’s digital projects is to increase online competition in a Silicon Valley-dominated world.

As part of the measures, the Digital Markets Act will impose new obligations on so-called “gatekeepers” or online players, which will determine how other companies interact with online users and to ensure users have sites with others Prevent from competing. These policies cover companies that provide digital services such as online search, social networking, video sharing sites, cloud computing, Internet messaging, online operating systems, online markets and products. advertising.

Failure to follow these policies can result in fines of up to 10 percent of the company’s global revenue, or – the worst risk for insolvent companies – repeated violations of new regulations, which are already EU legislation Has entered

On Tuesday, Brussels did not appoint companies as outposts. But any company in Europe would fall into the new category with at least $ 6.5 billion, or at least 45 million users, which would allow strict regulatory monitoring. Companies operating in at least three EU countries control the digital ecosystem that competitors must use to reach customers and maintain market positions. The course will include Facebook, Google, Apple, Amazon and Microsoft, although it is up to companies to initially determine if they fall under the new rules.

There will be a more limited gatekeeper arrangement to ensure that the new rules apply to smaller sites that do not generate enough revenue to meet the EU’s initial standards or to dominate only specific online ones. And market. Many departments within the Commission are expected to define who should be considered an outpost – a clear political decision that could lead to civil strife amid ongoing tensions over the strategy of coalition between Wester and Breton. In digital routing.

“We in Europe need to be careful as we focus on the issue of Big Tech,” said French teacher Jack Kremer, who co-authored a report released last year by the Commission on How to Change Policy in Competition for the Digital Age Was a writer. “The biggest problem we face is change in Europe.”

As part of the change, the commission planned to ban major digital companies from certain practices, such as displaying or ranking their products in front of competitors. For example, you can see how Apple improves its new digital services, while Google may be limited in placing its products at the top of people’s search results.

Brussels wants to restrict the ability of gatekeepers to restrict access to their online marketplaces, such as the App Store, as long as these competitors comply with the terms applicable to all companies in the service. . This is an important discussion for people like Spotify and Facebook who believe that Apple has reduced inappropriate words in the company’s apps in the company’s App Store. The iPhone manufacturer denies any attack.

Technology companies need to be informed and get approval from Brussels when small companies make plans to buy out competitors – according to officials, campaigners and some small technology companies, current EU integration policies give big companies start-ups There are several strategies to control the competition, which are seen to have failed to prevent them from achieving.

“We’ll be back in control for a playground,” Breton said. “So all businesses have equal opportunities, regardless of their nationality.”Digital Services Law: Great ResponsibilityBrussels largely resumed how big sites should police their sites for illegal substance-policies that had not been renewed for over two decades.

Under those separate measures known as the Digital Services Act, online sites need to do more to prevent the spread of illegal content and commercial products. The United Kingdom first released similar plans on Tuesday as the United States became known as the content change.