EU seeks new powers to police technology giants in Europe

The European Union is seeking new powers to police and penalize technology giants, like Apple, if their market dominance appears to threaten consumers or smaller rivals.

In recent years, the EU has stepped up efforts to curb the power of tech giants. In July, the EU announced plans to impose new tax, privacy, and online content rules.

Now, Brussels is seeking new powers to take on tech giants, including the ability to compel tech giants to break up, sell their European operations, or exclude companies from a single market altogether, The Financial Times reported on Monday.

Additionally, the EU is also mulling a rating system that could allow stakeholders and the public to assess a tech giant's behavior in areas such as tax compliance and the speed at which they take down questionable content.

EU commissioner Thierry Breton, who is spearheading the new rules, told FT that some of those powers would only be reserved for extreme circumstances. His comments follow public review of the EU's announced Digital Services Act.

"There is a feeling from end users of these platforms that they are too big to care," Breton said, adding that in some circumstances they "may also have the power to impose structural separation."

Regulators in Europe are drawing up a "blacklist" of activities that technology companies would be required to stop, as well as a "sliding scale" of penalties for non-compliance. Some of the antitrust rules include policies that prevent users from switching platforms, or systems that force users to rely on a single service.

However, Breton added that companies will retain limited liability for content posted on their platforms, adding that the rule is "something that's accepted by everyone."

Tech companies have come under scrutiny elsewhere in the world, too. The UK recently created a regulatory body that can impose fines without going through the court. In the U.S., the House Judiciary Committee is in the midst of wrapping up a yearlong antitrust investigation.

The EU commissioner said that draft legislation of the new rules would be ready by the end of 2020. Once the proposals are finished, they'll go through the European Parliament and the EU Council.

11 Comments

22july2013 3722 comments · 11 Years

About 4 years ago

Here comes the micromanagement of high tech companies. I wonder which high tech company will be the first to pull out of Europe rather than give away their competitive advantage? For example, will Google be forced to publish its search engine source code? Or will Apple be forced to open its Secure Element to other companies? Or will Facebook be required to allow its users to request and see all the information it contains on them? Some day the EU will force one of these companies out of Europe.

avon b7 8006 comments · 20 Years

About 4 years ago

22july2013 said:

Here comes the micromanagement of high tech companies. I wonder which high tech company will be the first to pull out of Europe rather than give away their competitive advantage? For example, will Google be forced to publish its search engine source code? Or will Apple be forced to open its Secure Element to other companies? Or will Facebook be required to allow its users to request and see all the information it contains on them? Some day the EU will force one of these companies out of Europe.

That isn't what is being proposed at all. Google or anyone else won't have to publish source code anywhere.

There is no micromanagement either. This is an extension of an Act which itself was intended to extend existing laws and practices to cover digital platforms which were nascent back then.

Everything will be similar to what is already applicable in the non-digital realm.

Another key aspect is that the EU wants to provide for situations so that new legislation is not necessary to be in place first, to be able to act as soon as complaints come in. That will make these processes far more agile if the proposals are approved and will force companies into far more stringent self regulation.

22july2013 3722 comments · 11 Years

About 4 years ago

avon b7 said:

22july2013 said:

Here comes the micromanagement of high tech companies. I wonder which high tech company will be the first to pull out of Europe rather than give away their competitive advantage? For example, will Google be forced to publish its search engine source code? Or will Apple be forced to open its Secure Element to other companies? Or will Facebook be required to allow its users to request and see all the information it contains on them? Some day the EU will force one of these companies out of Europe.

That isn't what is being proposed at all. Google or anyone else won't have to publish source code anywhere.

There is no micromanagement either. This is an extension of an Act which itself was intended to extend existing laws and practices to cover digital platforms which were nascent back then.

Everything will be similar to what is already applicable in the non-digital realm.

Another key aspect is that the EU wants to provide for situations so that new legislation is not necessary to be in place first, to be able to act as soon as complaints come in. That will make these processes far more agile if the proposals are approved and will force companies into far more stringent self regulation.

Did you read the same article as me? "Regulators in Europe are drawing up a "blacklist" of activities that technology companies would be required to stop". Have you seen the contents of that blacklist? What's on the list?

And never trust anyone who says that any of their views are "accepted by everyone."

entropys 4298 comments · 13 Years

About 4 years ago

Extending new powers is what big bureaucracies do. The EU is the biggest these days.

avon b7 8006 comments · 20 Years

About 4 years ago

22july2013 said:

avon b7 said:

22july2013 said:

Here comes the micromanagement of high tech companies. I wonder which high tech company will be the first to pull out of Europe rather than give away their competitive advantage? For example, will Google be forced to publish its search engine source code? Or will Apple be forced to open its Secure Element to other companies? Or will Facebook be required to allow its users to request and see all the information it contains on them? Some day the EU will force one of these companies out of Europe.

That isn't what is being proposed at all. Google or anyone else won't have to publish source code anywhere.

There is no micromanagement either. This is an extension of an Act which itself was intended to extend existing laws and practices to cover digital platforms which were nascent back then.

Everything will be similar to what is already applicable in the non-digital realm.

Another key aspect is that the EU wants to provide for situations so that new legislation is not necessary to be in place first, to be able to act as soon as complaints come in. That will make these processes far more agile if the proposals are approved and will force companies into far more stringent self regulation.

Did you read the same article as me? "Regulators in Europe are drawing up a "blacklist" of activities that technology companies would be required to stop". Have you seen the contents of that blacklist? What's on the list?

And never trust anyone who says that any of their views are "accepted by everyone."

Same article. I also skimmed the draft proposal at the EU a few days ago.

That is where my comment on acting without legislation that specifically banned an activity came from.

The idea is that companies will all be subject to the same clear guidelines and should know very well what actions will not be permitted under any circumstances. By nature these activities will fall under a broadly defined umbrella.

It is a way of making it clear to companies that common sense will keep them out of trouble for the most part.

What I didn't see is anything remotely similar to making companies publish source code.

The thinking behind this proposal is actually something positive and for the benefit of digital consumers.