Tuesday, 02 January 2024 12:17 GMT

EU legislators embrace major legislation to limit dominance of digital behemoths


(MENAFN) On Tuesday, EU legislators approved unprecedented regulations to curb the dominance of digital titans such as Alphabet unit Google, Amazon, Apple, Facebook, and Microsoft, but implementing them may be difficult owing to regulators' limited resources.

Along with the Digital Markets Act (DMA) provisions, lawmakers also adopted the Digital Services Act (DSA), which compels Internet companies to do more to police the internet for illicit material.

Companies can incur fines of up to 10% of their annual global sales for DMA infractions and 6% for DSA offenses. Lawmakers and EU member states secured a political agreement on both sets of regulations earlier this year, but certain specifics remained to be worked out.

The two Big Tech rule manuals were based on EU antitrust director Margrethe Vestager's investigations into the businesses. She has formed a DMA taskforce, with approximately 80 officials slated to participate, which opponents believe is insufficient.

Andreas Schwab, the European Parliament's lead on the matter, has asked for a larger taskforce to battle Big Tech's huge coffers.

The European Consumer Organization (BEUC) expressed similar concerns.

“We raised the alarm last week with other civil society groups that if the Commission does not hire the experts it needs to monitor Big Tech’s practices in the market, the legislation could be hamstrung by ineffective enforcement,” BEUC Deputy Director General Ursula Pachl stated in a released announcement.

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