Previously on this space we informed you about the move of the Chinese authorities to tame their tech giants. It turns out so that today, European authorities have rolled out some new regulations of their own to tame their own tech giants. We take a detailed look on the European scenario coming up in the paragraphs below.
In a press announcement today, the EVP Margrethe Vestager announced that the Commission had been observing the tech market closing. In recent times they had observed that tech giants like Amazon and Google were dominating the market with their big data mining and market dominating advertizing. As a result of this small competitors were having a really hard time to survive in the market. In a bid to make the market an even playing ground for all the players, the Commission has planned to roll out the Digital Services Act (DSA) and the Digital Markets Act (DMA). Let’s quickly look into these two acts.
DIGITAL SERVICES ACT (DSA)
Under this act the removal of illegal and fake content on the digital platforms will speed up. The act will make it mandatory for every digital platform company to have a ‘Know your customer’ category so that no one can sell their products through them without verification. This will allow to keep a check on the types of products being sold and digital platform companies won’t be able to dominant the market by allowing anyone to sell products through them.
DIGITAL MARKETS ACT (DMA)
Under this act big players will be given the title of ‘gatekeepers’ depending on the size of their daily commerce and the annual turnover. ‘Gatekeepers’ will be watched over the usage of the customer info they have, interoperability and self-preferencing. All this watching over will allow for a even playing ground. Small players will be able to compete in a more realistic way.
The goals of the two acts are promising but the thing is tech giants like Amazon and Google are known for coming up with bypassing techniques to escape these acts. What is your take on the matter? Will these acts help create a level playing ground?