Big Tech in the Sights of EU, UK Regulators
The EU named the Big Tech firms subject to stricter rules under the Digital Services Act (DSA) Tuesday, and the U.K. government floated legislation aimed at cracking down on their market dominance in Britain. The DSA governs providers of intermediary…
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services such as social media; online marketplaces; very large online platforms (those with at least 45 million active monthly users in the EU); and very large search engines. Those designated very large platforms and search engines must offer users a system for recommending content that's not based on profiling, and analyze the systemic risks they create for dissemination of illegal content or harmful effects on fundamental rights (see 2210040001). The list of 17 very large online platforms includes Amazon Store, Google (Play, Maps and Shopping), Facebook, Instagram, Twitter, Wikipedia and YouTube. The two very large online search engines are Bing and Google Search. They have four months to comply with the DSA. Meanwhile, the U.K. said Tuesday it also intends to crack down on Big Tech market dominance. The government introduced a bill establishing new powers to boost competition in "digital markets currently dominated by a small number of firms," clamp down on subscription traps to make it easier for consumers to opt out, and tackle fake reviews that cheat consumers via bogus ratings. The measure would give a Digital Markets Unit (DMU) within the Competition and Markets Authority new powers to go after large tech companies whose market dominance "stifled innovation and growth across the economy, holding back start-ups and small firms from accessing markets and consumers." The DMU could set tailored rules for businesses deemed to have strategic market status in key digital areas, with the biggest firms potentially required to give customers more choice and transparency. Failure to comply could mean fines of up to 10% of a company's global revenue. The measure needs parliamentary approval.