EU Lawmakers Approves Landmark Rules Limiting the Power of Large Technology companies

On Tuesday, lawmakers in the European Union (EU) approved landmark rules that could affect Alphabet subsidiary Google, Amazon, Apple, Facebook, and Microsoft.
SIA Team
July 5, 2022

The Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content, was approved by lawmakers, according to a statement from the European Commission. The new act supplements the Digital Markets Act’s rules (DMA).

Companies that violate the DMA rules may face fines of up to 10% of their annual global revenue, and up to 6% for DSA violations. Lawmakers and EU member states reached a political agreement on both rule books earlier this year.

The DSA prohibits advertising to children or targeting them based on sensitive information such as religion, gender, race, or political beliefs. The act will also make it illegal to use dark patterns, which are tactics used to trick people into providing personal information to companies online.

Reuters reported that the DMA would require businesses to implement changes such as interoperable messaging services and providing business users with access to their data. Business users would be able to promote competing products and services on a platform. Companies will not be allowed to prefer their own services over those of competitors, nor will they be allowed to prevent users from deleting pre-installed software or apps.