Leading tech firms facing massive fines

Published:

On: Dec 2020

According to the recent tech buzz, the topmost American tech giants may have to avert their desirable business practices in the European continent or face huge penalties between six to ten percent under newest draft European Union (EU) regulations which is to be declared on Tuesday. The new set of regulations are the most serious try by the 27-country group to restrict in the power of the American tech giants which manage troves of information and online platforms on which numerous companies and Europeans depend on.

They also elaborate the frustration of the European Union along with its antitrust cases against the American tech giants which didn’t demonstrate the issue. Regulatory inspection has been increasing across the world of technical giants and their power.

The Competition Commissioner of Europe Margrethe Vestager and Internal Market Commissioner Thierry Breton will introduce the regulations a bid not just to restrict in tech giants of the United States but also to prevent the appearance of anti-competitive dominant firms.

One set of rules named as the Digital Markets Acts known for fines nearly 10 percent of yearly turnover for online gatekeepers discovered breaching the new regulations. It also represents a list of dos and don’ts for gatekeepers which will be divided as per the criteria including revenues, number of users and total number of markets in which they are active.

Reportedly, the second set of regulations called as the Digital Services Act which also targets extremely high online platforms as those with more than 45 million customers. Furthermore, they will be needed to perform more possibilities to tackle unauthorized content on their platforms, exploitation of their platforms that break conventional rights as well as worldwide manipulation of platforms to promote elections and public health, among others.