On Tuesday i.e. on December 15, the Financial Times (FT) reported Brussels disseminated its tech legislation drafts in the European Commission (EC). And as per the draft published the European Union (EU) warned that it might break up Big Tech for any type of repeated practices that are supposed anti-competitive.
Moreover, the draft is listed with two new rules – the Digital Markets Act (DMA) and Digital Services Act (DSA). And if these two get adapted then will surely have repercussions for digital service providers. Importantly this repercussions can take place both in the EU and outside it as per the report.
It will start with a fine and then for any further violation of the law, the regulations would even hold these tech companies.
However, before coming into action the proposal has to pass by the European Nation and also from the European Parliament. To get published by the European Commission (EC) the proposal was scheduled on Tuesday (Dec. 15), also there will be a voting procedure in the European parliament to check the majority support.
Apart from this, there is no scheduled date when these new rules will come into action.
As said in the published report that companies breaking the new rules would have to face steep penalties. These penalties might even range up to 10% of their global revenues.
Moreover, big Tech firms will have to pay 6% of their global revenues in case they don’t police their fora.
The DMA draft will count the number of penalties a company had paid for their repeated offed. And if the penalties count touch the mark of three within five years then the EU can break up the businesses and this could be the worst situation for any big tech giant.
According to the FT report, if the new Big Tech rules get passed then it will be stringent in the world.
As per the new rules tech companies will have to hire one or more compliance officer to look after the rules and its violation. Apart from this the new rule would for more clarity in online ads.
This is all about the new Big Tech rules and its threat for Anti-competitive practices, Stay tuned! More updates upcoming.