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| Europe is punishing tech companies with fines or threatening to demolish them |
The head of digital technology in the European Union Thierry Breton (Thierry Breton) said that the European Union has fined or imposed a fine on technology companies that violate the rules.
Breton said tech giants who flout new European rules limiting their power could face fines, be forced to change their practices, or liquidate European companies.
Britton's comments came two weeks before the first draft of the so-called Digital Services Act (DSA) and The head of digital technology in the European Union Thierry Breton (Thierry Breton) said that the European Union has fined or imposed a fine on technologythe Digital Marketplace Act (DMA).
The new draft could affect major players in the United States such as Google, Amazon, Facebook, Microsoft and Apple.
The Digital Services Act requires tech companies to explain how their algorithms work, open their ad files to regulators and researchers, and take more action on their platforms to combat hate speech, malicious content, and counterfeit products.
The Digital Market Law (DMA) targets technology companies that can control access to platforms with a number of requirements, such as: b- Sharing certain types of data with prohibited practices of competitors and regulators (such as preferring their own services).
The new draft rules also include a number of penalties: Britton said we first have to impose a fine, then a higher fine, then you can get temporary treatment, specific treatment, and then possible structural separation.
He added: Hence, we are entitled to fines and dismantling, but of course only in the European market, and forcing the company to dismantle will be the last resort.
He stated that demolition or structural separation is not a goal, but rather a decision to ensure that other measures are taken if necessary.
Breton said that large tech companies looking to takeover may also need to inform the European Commission (the EU's executive body) of their intentions.
"These companies may have an obligation to just tell us what they want to do and then we'll see if they have fulfilled all of their obligations," he added.
The law has not yet entered into force and the European Commission needs to negotiate with EU countries and the European Parliament to agree on final legislation. This process may take a year or two.