Following antitrust investigations from the U.S. Government into online giants Amazon, Facebook, Google and Apple back in July 2020, the EU has now threatened to break up Silicon Valley’s big tech companies if the US can’t.
The argument revolves around monopoly and antitrust laws, put in place to stop companies from engaging in anti competitive behaviour. Whilst the U.S has been conducting investigations this December in an aim to break up Facebook and bringing seemingly incriminating emails sent from its founder to light, the EU has since released two major new drafts of regulations for tech companies.
The two documents are the Digital Markets Act and a Digital Services Act which seek to hold companies accountable for both unfair competition and the regulation of illegal behaviour on their platforms. The documents come from the EU centre of Brussels and are the first significant revamp of policy from the EU in twenty years. Both proposals for the new acts will first need to be voted on by the Council of Ministers and European Parliament before being able to be made into law. There is, however, no timetable as of yet to when this might occur.
The proposals include big fines for big tech companies seeking to eat up market competition. Companies will be liable for up to 10% of their worldwide revenue for acts of deliberate anti-competition, while fines for up to 6% of global revenue will be put in place for companies that fail to regulate their platforms for illegal behaviour.
If the new laws were to come into place they would indicate one of the biggest and most significant shifts in worldwide policy making, as EU law would greatly impact US companies’ working practices. The EU laws are noted to be some of the most strict and stringent big tech companies would have to comply with.