The European Union has recently increased regulation of the Big Tech players Amazon, Alphabet, Apple, Microsoft, Meta and ByteDance. The new rules must be followed by these companies within six months. Microsoft and Apple contested the decision that Bing and iMessage need to comply with the regulations; however, these have been met with claims of anti-Americanism by the EU.
BRUSSELS — This week saw tougher regulations for US tech giants in Europe, but an EU official told CNBC that the aim is to prevent them from being broken up. The European Commission declared six tech "gatekeepers" on Wednesday, all of which have annual turnover of more than 7.5 billion euros ($8 billion) or 45 million monthly active users in the EU. These companies - Amazon, Alphabet, Apple, Microsoft, Meta and ByteDance - have 6 months to comply with the new rules, such as not preventing users from removing pre-installed software and apps, and not favouring their own services over others.Thierry Breton, Commissioner for the Internal Market, warned CNBC on Wednesday that they could face fines of up to 10% of their global revenue if they do not comply, rising to 20% if they continue to ignore the rules. He said the conversation they're having with the companies is "professional," and there is optimism that they will make a positive move, making it unnecessary to resort to measures such as breaking them up.
Microsoft and Apple have rebutted the European Commission's assertion that their services, Bing and iMessage, should conform to the new regulations, termed the EU's Digital Markets Act. An inquiry into their positions is underway and the ruling will be made within five months.
In recent times, the European Union has intensified its control over the Big Tech enterprises and been charged with possessing a prejudice against US-headquartered firms, who make up the majority. In an interview with CNBC, Commissioner Thierry Breton said that he welcomed the prospect of non-European companies accessing the European digital market, which is larger than America's. He stated that he was glad these major corporations could benefit from it.
On top of the Digital Markets Act, the EU has also proposed the Digital Services Act, which is aimed at making platforms legally accountable for the content they hold. Should there be any violation of the rules, there could be hefty fines and temporary bans in the European market.In anticipation of the new regulations, a stress test has been conducted for the X social media platform, formerly known as Twitter, highlighting that there is further work to be done in order to eradicate illegal content and disinformation.The Digital Services Act covers 19 online services, including Amazon Marketplace, Apple AppStore, Instagram, TikTok, and GoogleSearch. This listing may include additional companies, such as Netflix, PornHub, and Airbnb.
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