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The European Union wants to squeeze the Internet monopolists with fines of up to 10% of revenue
fourteen.12.2021 [18:42],
Alexey Razin

European regulators are ready to impose new legal restrictions on the activities of large companies in the technology sector. If the authorities consider that they are abusing their influence in the market, they will face forced restructuring or fines of up to 10% of annual revenues. A draft version of the bill will be presented tomorrow.

Image source: Bloomberg

Bloomberg agency reports this with reference to its own informed sources. European lawmakers want to limit the ability of internet giants to influence competitors’ businesses by using data from them. Large corporations such as Google, Amazon and Apple should not, according to European regulators, use access to data on competitors’ businesses to prioritize promotion of their own business.

The criterion for the need to take radical measures in the form of compulsory business restructuring will be the receipt by the company of three antitrust fines over five years. The amount of each fine can be up to ten percent of the company’s annual revenue. The degree of influence of a particular company on the market in its segment will be determined by the size of the user base and the amount of revenue, as well as the presence of a sufficient number of competitors in a particular niche. The list of companies whose activities will require increased attention should be updated every two years.

Along the way, other measures will be proposed to regulate the activities of Internet companies in the territory of the EU countries. Dissemination of illegal content or information of extremist content will be prosecuted with a fine of up to 6% of the company’s annual revenue. The bill has a long way to go before turning into working legal norms, but so far experts agree that the antitrust legislation in the industry needs to be reformed, since the existing rules do not allow to effectively influence companies with significant market influence.