Strict rules coming from EU to digital platforms

The European Parliament (EP) will trigger adjustments within the actions of digital platforms “Digital Market Regulation” introduced that an settlement was reached within the negotiations with the European Council on the problem.

Accordingly, the EU will introduce new rules to restrict the market energy of main digital platforms.

The unfair practices of those platforms might be ended.

MAJOR PLATFORMS WILL BE CALLED “THRESHOLD GUARDS”

Search engines like google and yahoo, social networking websites or platforms that provide communication providers, that are essential in digital markets, might be decided.

Giant platforms working in Europe, with a market worth of no less than 75 billion euros, annual turnover over 7.5 billion euros, reaching greater than 45 million month-to-month customers or utilized by greater than 10 thousand business enterprises “gatekeeper” might be named.

These firms will fall below the Digital Market Act. These expertise firms and digital platforms might be topic to stricter rules than others and unfair competitors of their sectors might be prevented.

PENALTY OF UP TO 20 PERCENT OF REVENUES FOR NON-COMPLIANT PLATFORMS

These platforms may also be restricted from buying firms that will compete with them sooner or later. Some actions of the platforms could also be stopped if they don’t adjust to the decided market rules.

“The Gatekeeper” Firms within the place of violate the rules will be fined up to 10 p.c of their world turnover within the earlier 12 months.

In case of continued violations of those rules, the penalty fee will enhance up to 20 p.c of the worldwide turnover.

Below the legislation, totally different messaging providers may also want to be interoperable.

DIGITAL PLATFORMS CANNOT PUT ITS OWN SERVICES BEFORE COMPETITORS’ SERVICES

Digital platforms might be prevented from putting their numerous providers forward of comparable providers of their opponents.

Customers is not going to be prevented from uninstalling pre-installed software program or functions.

After this stage, to ensure that the mentioned legislation to enter into power, it should be formally accepted by the EP and the European Council and printed within the EU Official Journal.

The legislation is anticipated to change the European operations of US expertise corporations equivalent to Google, Amazon, Apple, Meta and Microsoft.