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Dec 22, 2020
Digital Services Act and Digital Markets Act
The European Union announced the Digital Services Act and Digital Markets Act this month. The proposed legislation is designed to prevent Big Tech from competing unfairly with small businesses. A fine of ten per cent of total revenue would be assessed for violations of the regulations. Google, Apple, and other large companies would be prevented from ranking their products ahead of others, and from banning smaller companies from their marketplaces. In some cases, big companies would have to share their data with smaller competitors.
The larger players may also be prevented from pre-installing their software on devices.
Big Tech companies may face fines of as high as 6 per cent of global revenue for disseminating illegal content. Independent auditors would be appointed to monitor the data of Big Tech companies.
If the DSA and DMA become law, the way the digital economy functions will be transformed.