EU, UK prepare new rules, each well-known technology giants will face a massive blow

By: anna zhannifer Apr. 26,2023

TikTok, Twitter, Facebook, Google, Amazon and other big tech companies are facing growing pressure from European authorities as London and Brussels proposed new rules on Tuesday to curb the power of digital companies.

The British government unveiled draft legislation that would give regulators more powers to protect consumers from online scams and fake reviews and to promote digital competition.

Meanwhile, the EU will release a list of 19 of the largest online platforms and search engines that face additional scrutiny and obligations under the 27-nation bloc's landmark digital rules that come into force later this year.

The updates help cement Europe's reputation as a global leader in efforts to rein in the power of social media companies and other digital platforms.

The U.K.'s Digital Markets, Competition and Consumer Bill proposes to give regulators more power to undermine the dominance of tech companies and threatens fines of up to 10 percent of their annual revenue.

Under the proposals, online platforms and search engines could be required to give competitors access to their data or be more transparent about how their app stores and marketplaces operate.

The rules would make it illegal to hire someone to write a fake review or to allow online consumer reviews to be posted "without taking reasonable steps" to verify their authenticity. They will also make it easier for consumers to get rid of their online subscriptions.

The new rules, which still need to go through the legislative process and be approved by Parliament, will only apply to companies with global revenues of £250,000 or UK revenues of £100 million.

Also on Tuesday, the European Commission, the EU's executive body, will designate 19 of the largest online platforms or search engines that will have to take additional measures to clean up illegal content and false information and ensure user safety online.

Violations of the EU's new Digital Services Law could result in fines of up to 6 percent of a company's global annual revenue (amounting to billions of dollars) or even a ban on operating in the EU.

Google, Twitter, TikTok, Apple, Facebook and Instagram have already revealed that they have more than 450,000 users in Europe, putting them over the EU threshold.
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