EU lawmaker wants Big Tech regulations to specifically target US firms

As the EU drafts proposals to regulate technology firms, one European lawmaker wants the financial definition of Big Tech changed to ensure chiefly American companies are affected.

The European Union has proposed legislation that would regulate Big Tech companies and fine them for noncompliance. As the Digital Markets Act (DMA) proposals work toward becoming law, European Parliament lawmaker Andreas Schwab wants to introduce new changes to the definition of Big Tech.

According to Reuters, there are currently two specific definitions for what are known as Big Tech companies, or "online gatekeepers." The first is that they are companies that have an annual turnover of more than $8 billion from their European businesses in the last three years.

The second is that alternatively they have a market value of $80 billion in the last financial year. In either case, as originally proposed by the European Competition Commissioner Margrethe Vestager, they must provide what's described as a platform service in at least three EU countries.

In a new report for the EU, lawmaker Andreas Schwab says that these definition thresholds should all be increased. He says the turnover should be $12.22 billion, and the market value be at least $122.2 billion.

"The DMA should be clearly targeted to those platforms that play an unquestionable role as gatekeepers due to their size and their impact on the internal market," he wrote. "[It] is appropriate to increase the quantitative thresholds and to add... that they are providers of not only one but, at least, two core platform services."

The previous, lower levels were likely to mean technology firms from the US, Europe, and Asia, would be bound by the new regulations. If accepted, the increased figures are more likely to limit the laws to US firms such as Apple, Google, and Facebook.

If enacted, the Digital Markets Act and its stablemate the Digital Services Act, will together aim to make it possible for smaller companies to compete. Apple could be legally required to stop highlighting its own apps over third-party ones in an App Store search, for instance.

Google and Apple could both be required to allow users to remove their preinstalled apps. They could also be forced to share more information to do with the performance of apps.

EU competition chief Margrethe Vestager on Tuesday said that the two acts would both ensure that users "[The two acts would mean users] have access to a wide choice of safe products and services online," Vestager said in December 2020. "[Businesses in Europe would "freely and fairly compete offline just as they do online."

If the legislation is passed, then a company found to be breaking the new law would be fined. One suggestion is that they would be liable to pay 10% of the company's annual global turnover.

It's also possible that repeated, systematic violations of the laws would mean the EU could force companies to divest. However, the EU has also said that breaking up the companies would only happen if there was "no other remedy" available.

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12 Comments

genovelle 1481 comments · 16 Years

About 3 years ago

Sounds like these companies should limit services to Europe like disabling access to Apps on the App Store. That should remove all concerns. The public should be happy with that.

aderutter 622 comments · 17 Years

Disgraceful but not surprising.

22july2013 3725 comments · 11 Years

genovelle said:

Sounds like these companies should limit services to Europe like disabling access to Apps on the App Store. That should remove all concerns. The public should be happy with that.

Or Apple could disable access to apps on the App Store for Europe, in order to help them out. Glad you said that.

verne arase 479 comments · 11 Years

Sounds like the EU want a trade war - perhaps we should target EU car companies like Fiat, Mercedes Benz, BMW, and Volkswagen and medical equipment suppliers like Siemens.

European companies were once relevant in tech, but that seems to have gone by the wayside - maybe it's not coincidence but the result of heavy handed administration by EU officials.

Who the heck do EU administrators think they are - breaking up foreign companies. They are not administrators for the world and have no authority beyond their own borders.

I think Volkswagen's board should be broken up and be subject to criminal prosecution for committing environmental testing fraud - but Volkswagen is not an American company and we can't do that.

I remember when European companies like Phillips Electronics were relevant and heavily involved in things like optical media - and it's really sad to see European firms gone from the digital landscape - with only companies like Spotify who try to shortchange the artists responsible for their content as well as providers on whose platforms their service exists.

rob53 3307 comments · 13 Years

verne arase said:

I think Volkswagen's board should be broken up and be subject to criminal prosecution for committing environmental testing fraud - but Volkswagen is not an American company and we can't do that.

Maybe we can. "Volkswagen is the founding and namesake member of the Volkswagen Group, a large international corporation in charge of multiple car and truck brands, including Audi, SEAT, Porsche, Lamborghini, Bentley, Bugatti, Scania, MAN, and Škoda. .. has manufacturing facilities in the United States" Three of their brands sell heavily in the US so it wouldn't be that difficult to lay some special taxes on them. As you mentioned they were caught committing fraud with emissions and probably still are. I don't understand why the EU thinks they can get away with being in charge of the world. That ship sailed a long time ago. They're not a bit player but it's obvious they don't control how big business actually operates anymore. That's still the combination of China and the US.