You are here: Home » International » News » Companies
Business Standard

Tech firms' services could face ban if they breach EU rules: Industry chief

The new draft rules come as critics of U.S. tech giants, which include companies and industry bodies, question the EU's rulings against Alphabet unit Google

Topics
European Union | Tech companies | Digital services

Reuters 

European Union
The draft rules would allow the EU to ban companies or part of their services from the 27-country bloc as an extreme option

Technology companies' services could be banned from the European market if they do not heed EU regulation, Europe's industry chief Thierry Breton told German weekly Welt am Sonntag, as the European Commission finalises rules on internet

Breton will announce new draft rules known as the Act and the Digital Markets Act together with European Competition Commissioner Margrethe Vestager on Dec. 2.

The rules will set out a list of do's and don'ts for gatekeepers - online with market power - forcing them to share data with rivals and regulators and not to promote their services and products unfairly.

The new draft rules come as critics of U.S. tech giants, which include and industry bodies, question the EU's rulings against Alphabet unit Google, saying they have not curbed its allegedly anti-competitive behaviour. Some want EU enforcers to go further than just ordering companies to stop such practices.

The draft rules would allow the EU to ban companies or part of their services from the 27-country bloc as an extreme option. Until the draft rules are adopted EU antitrust and digital regulators do not currently have the power to impose such bans.

"Strict rules must be enforceable", Breton told Welt am Sonntag.

"For this we need the appropriate arsenal of possible measures: Impose fines, exclude companies or parts of their services from the Single Market, insist that they split up if they want to keep access to the Single Market. Or a combination of all of these."

He added that these sanctions would only apply to companies that do not respect the EU's rules, and that the toughest measures would only be used in exceptional circumstances.

In a sign of how much tech firms fear the new regulation, Google unit last month launched a 60-day strategy to get U.S. allies to push back against the EU's digital chief.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, November 15 2020. 17:03 IST
RECOMMENDED FOR YOU
.