European Commissioner for Internal Market, Thierry Breton, discussed the latest developments in Big Tech regulation in an interview with CNBC. The European Commission, the executive branch of the EU, has introduced stricter rules for U.S. tech giants operating in Europe. The Commission has identified six “gatekeeper” companies with significant influence within the EU, including Amazon, Alphabet, Apple, Microsoft, Meta, and ByteDance. These companies now have a six-month period to adhere to the enhanced market regulations.
The new rules aim to prevent these tech giants from engaging in practices such as preventing users from uninstalling pre-installed software or favoring their own services. In the event of non-compliance, the EU has the authority to impose fines of up to 10% of the company’s global revenue, which could be raised to 20% for continued violations.
Breton emphasized that the goal is not to break up these companies but to encourage compliance through fines and professional discussions. However, Microsoft and Apple have challenged the commission’s stance regarding their services, Bing and iMessage, under the EU’s Digital Markets Act. An investigation is underway to determine the validity of their arguments, with a decision expected within five months.
The European Union has intensified its oversight of Big Tech in recent years, although it has faced criticism for appearing anti-American due to the predominantly U.S.-based nature of these companies. Breton emphasized the EU’s openness to welcoming successful companies, whether European or non-European, into its digital market, which he highlighted as larger than that of the United States.
In addition to the Digital Markets Act, the EU has introduced the Digital Services Act, which holds platforms legally accountable for the content they host. Non-compliance with this act can lead to substantial fines and temporary bans in the European market.
Stress tests conducted on major tech platforms ahead of implementing these new laws have revealed areas that need improvement, such as addressing illegal content and disinformation. Notably, Amazon Marketplace, Apple AppStore, Instagram, TikTok, and GoogleSearch, among others, are now subject to the stricter rules. The list may expand to include additional companies, potentially encompassing platforms like Netflix, PornHub, and Airbnb.
