Just a week ago there was talk of the law that the European Union had planned to pass to protect local content on streaming platforms and now the committee led by Margrethe Vestager returns to occupy the front pages with more regulations aimed at preventing monopolies, the protection of the «private gardens» and to encourage competition.
Relieved by the concern of European companies that want to compete in the European market, the European Commission has presented two new bills that seek to strictly legislate how large technology companies operate in Europe.
The Digital Markets Act provides for a ban on privileging one's own content. This means that when searching the App Store, for example, Apple products may not consistently be in the top positions, above other companies' apps which can sometimes be more popular. Additionally, companies will be required to allow users to uninstall all pre-installed apps. Additionally, they will be required to share performance metrics with advertisers and content creators for the platforms for free.
This rule applies to companies that have an annual turnover in the European Economic Area (EEA) equal to or greater than € 6,5 billion in the past three years, or if their average market capitalization or equivalent market value has been amounting to at least € 65 billion in the last financial year and provide a basic platform service in at least three Member States.
Failure to comply with these standards can lead to hefty fines, which can amount to ten percent of the company's annual turnover. Regulation should involve significant long-term changes, rather than repeatedly having to be fined for non-compliance.
Another measure to penalize large tech companies is forced divestment. Systematic non-compliance could result in an obligation to sell parts of your business "if there is no other solution."
On the other hand, the Standard for Digital Services (Digital Services Act) is designed to prosecute illegal and harmful content by forcing platforms to remove it quickly. Hefty fines have also been imposed if these standards are not met. The chair of the antitrust commission, Margrethe Vestager, said that both proposals have a dual purpose:
Make sure that we, as users, have access to a wide variety of secure online products and services. And that companies operating in Europe can compete freely and fairly just as they do in the physical world.
Although both pieces must be approved by each national government in the European Union, there are indications that they intend to pass more quickly than is customary in this type of European regulation.
Other governments are also working on similar legislation, such as that of the UK, which announced a 10% fine of global revenue, unless platforms quickly remove illegal content.
