Digital market law… Will Big Tech catch unfairness?

On November 23, 2021 (local time), the new digital market law legislation, a new bill that was being discussed by the European Commission EC, saying that the existing rules are not functioning enough for large technology companies, was overwhelmingly 42 votes in favor, 2 against, and 1 abstention. approved by the majority. Some of the bills include a ban on targeting minorities or a ban on dark patterns in which companies intentionally deceive users.

The monopoly of tech giants such as Google, Amazon and Facebook is in question, and in 2020, the European Commission proposed the Digital Services Act and the Digital Markets Act to curb the power of big tech. The Digital Services Act requires a wide range of online intermediaries to delete illegal content, and the Digital Market Act aims to prevent companies that are gatekeepers from taking anti-competitive actions such as their own priority policies.

On November 23, the draft digital market law was passed. According to the content of the draft, the corporate messaging app and social media app should be interoperable, avoiding a situation in which users are forced to choose which app because their followers are here. The ban on behavioral targeting to minority groups and companies that violate the new law could be fined up to 20% of their global annual sales. Consumer consent is required to aggregate data collected by multiple services in one place, and it is prohibited to provide low-quality services to users who refuse to be counted. It also includes a ban on dark patterns, designs that intentionally deceive users, restrictions on acquisitions, and guarantees that consumers will quickly sue consumers if they violate digital market laws.

The criteria for being a gatekeeper were also revealed. Gatekeeper provides services in at least three EU countries among major companies that provide core platform services such as online brokerage services, social networks, and search engines, and needs to have more than 45 million monthly end users and more than 10,000 business users. there is Today, it includes Amazon, Google, Facebook, Microsoft, Apple and Booking.com.

Regarding the tightening of regulations, a BEUC official from the European Consumer Agency said the time has come for EU institutions to stand up for consumers and bring healthy fairness and openness to the digital market. He also noted that past practices have shown that enforcement of regulations is too time-consuming and that fines are meaningless for well-funded tech giants.

In fact, Google was fined more than 3 trillion won for giving preference to its service in Google Shopping, a product search service, but the verdict was given 12 years after the investigation. As the trial lengthens, corporate actions are not corrected and adversely affect consumers.

The European Parliament IMCO agrees to impose direct and immediate bans and obligations on gatekeepers, and expects to tighten regulations on preferential treatment of companies’ own products. In addition, if the draft is voted on at the plenary session in December 2021, negotiations between EU member states or committees will begin in 2022, and the law will come into effect within the year 2022. Related information can be found here.

Meanwhile, on 23 November, Italian antitrust authorities fined Amazon and Apple €230.2 million for anti-competitive conduct. Both companies have expressed their intention to appeal.

According to an investigation by the authorities, on October 31, 2018, Amazon and Apple had signed a contract to ban certain product resellers from using Amazon.it and to allow only limited companies to sell products. The target products are Apple and Beats, a manufacturer of audio devices under Apple.

The contract violated European Union law, affecting third-party reseller activity and price competition. It imposed fines and ordered the use of resellers to be lifted.

In response to the order, Apple said it had a dedicated team in place to ensure that only genuine Apple products were sold, working with resellers, law enforcement agencies, customs and sellers to deny cheating and help customers buy genuine products. Amazon says it denies the idea that Amazon is profiting from the exclusion of retailers because its business model relies on retailer success. Related information can be found here.

Meanwhile, the Russian government as well as Europe are said to require American companies such as Apple, Google and Twitter to establish offices by 2022 under a law that makes it mandatory for companies operating on the Internet to have offices in their country.

According to the report, according to the Law on Foreign Activities on the Internet in the Territory of the Russian Federation adopted on July 1, 2021, enterprises with more than 500,000 users are required to have an authorized expatriate office, branch or local corporation in Russia. .

The companies that require installation are Google, Apple, Meta, Twitter, TikTok, Telegram, Zoom, Like Me, Viber, Discord, Pinterest, Spotify, and Twitch, and the establishment deadline is January 1, 2022. am. In addition, restrictions on access to information contrary to Russian law are required, such as installing a feedback form that can be exchanged with Russian users, registering an account for communication with the authorities, and so on. Related information can be found here.