The draft rules will be announced on December 2
Tech companies could be banned from EU: here’s why. Source: shutterstock.com
Failure to respect EU regulations could see technology companies banned from operating in the European markets.
These sanctions will only apply to organizations that fail to adhere to EU rules. However, the toughest measures will only be used in exceptional circumstances.
The Digital Markets Act and Digital Services act will set out a number of rules and regulations. This will force gatekeepers to stop the promotion of their products and services unfairly and prevent them from sharing data with regulators and rivals.
The rules come as industry bodies and companies question the EU ruling against Alphabet’s Unit Google. The critics claim that they have not stopped the alleged anti-competitive behavior.
As the last option, the draft rules will allow the banning of businesses or some of their products and services from the 27-country bloc. However, digital regulators and EU antitrust do not have the power to impose such bans until the rules are adopted.
Tech firms fear the new rules and regulations. As such, the Google unit has begun a 60-day scheme in October 2020. This is aimed to get US allies to defy the EU’s digital chief.
We’ve reported that the European Commission has accused Amazon of abusing non-public data from third-party merchants to boost sales of its own brands in France and Germany.
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