The European Union unveils its plan against the excesses of Google, Facebook and Amazon
The European Union unveils its plan against the excesses of Google, Facebook and Amazon
Brussels to propose two pieces of legislation to close legal loopholes in which large companies are engulfed
Complete change of philosophy. After years of running in vain after the infringements of Google, Facebook or Amazon (so-called "Gafa")in the endless procedures of European competition law, Brussels wants to change gears to go fast and act upstream, before drifts are found. The European Union is presenting its plan on Tuesday to finally impose its law on digital giants accused of abusing their power without taking responsibility.
Essential services but also drifts
"The aim is not to eliminate the major platforms, but to impose rules on them to prevent them from putting our democracy at risk," said Internal Market Commissioner Thierry Breton, who is bringing the case with The Vice-President in charge of Competition, Margrethe Vestager.
Telework and video conferencing, shopping on the internet, online courses... The coronavirus pandemic has increased the place of digital technology in the daily lives of Europeans. But these new services, which have become indispensable, generate excesses: hate speech spread on a large scale, manipulation of information, death of small business, tendency of giants to form conglomerates limiting competition…
Closing legal loopholes
The EU executive will propose two complementary pieces of legislation to close the legal loopholes in which companies are engulfed. The first part: the Digital Services Regulations must hold all intermediaries accountable, but even more so to the larger platforms that will need to have the means to moderate the content they host and cooperate with the authorities. It represents an update of the e-commerce directive, born 20 years ago when today's giant platforms were still just start-ups, or even did not yet exist.
Second part: the Digital Markets Regulations will impose specific constraints on only so-called "systemic" players, a dozen companies whose omnipotence threatens the free play of competition. Among them, the five GAFAM (Google, Apple, Facebook, Amazon and Microsoft).
They will be forced to impose rules on the transparency of their algorithms and the use of private data, at the heart of their business model. They will have to notify the Commission of any proposed acquisition of a firm in Europe. These champions of market valuation are accused of imposing their law on competitors when they have not simply wiped them out. They will have to "significantly change the way they do business," Breton said, believing that the digital space should benefit all businesses, even the smallest ones.
Sanctions until dismantling
Sanctions are attached to these rules. According to European sources, they will go up to 10% of turnover for serious competition violations, and in extreme cases, may lead to dismantling: the obligation to divest operations in Europe. For illegal online content, fines can be up to 6% of sales. A ban on continuing its activities in Europe may be imposed "in the event of a serious and repeated breach resulting in the endangerment of the safety of European citizens".
This project will still be negotiated for at least one year with the European Parliament and member states. It comes as proceedings have been launched against Google and Facebook in the United States, accused of abusing their dominant position in search engines and social networks. Brussels expects a more harmonious and equitable digital market that will encourage the emergence of European players, while the EU is lagging alarmingly behind in the new economy.
Empires counterattack
In the face of this offensive, American behemoths are preparing intense lobbying to mitigate the project, as revealed by the leak in November of an internal Google document evoking a desire to weaken Thierry Breton. The Commission's project risks leading to "brutal and rigid rules targeting size rather than sanctioning problematic conduct," says Kayvan Hazemi-Jebelli, head of competition issues for the Computer and Communications Industry Association, which represents companies in the sector. He sees it as a danger to innovation and growth in Europe.
Source:- Flash News and News Agencies