According to AFP, a new European Union law has been drafted that states that the Big Tech giants could potentially be fined 10% on their total revenue amount. This new EU law imposes strict regulatory mechanisms upon Big Tech giants. An OSINT account said on Twitter, “BREAKING – New EU law draft reveals Big Tech giants could be fined 10% of total revenue: EU sources.”
Tech Giants will be fined 10% on their total revenue
The Tech Giants are likely to be fined as high as 10% on their revenue. This fine will be imposed if these companies fail to comply with latest European Union laws regarding data usage regulation. Big Tech corporations that could face potential fines include Google, Amazon.com Inc and Apple Inc. These companies could also be banned from using data taken from business users.
Big Tech giants are used are known for obtaining data from their business users. This data is then used for competing with other corporations. The European Union has consolidated a comprehensive plan to operate as regulators around the globe especially when it comes to Big Tech giants. Facebook is already under the threat of a business breakup given the recent antitrust suit in United States.
The new law also contain provisions that state that those firms which are found regularly violating the rules will be required to demonstrate behavioral or structural changes. This includes divesting units as well. Companies will be labelled as systemically non-compliant if the European Union has issues at least three fines within the period of five years against the company.
The proposed legislation will not instantly constitute as law. The proposal will go through a long and exhaustive ratification process. The EU members, European Parliament and company lobbyists will be involved in the final procedure. The trade associations influenced by this legislation will also be considered.
The main purpose of the Digital Services Act is to update legislation that was initially written in 2004. A twitter user reported, “New EU law seeks to impose heavy penalties on big tech firms that adopt anti-competitive practices or fail to take down illegal content. Penalties may include forced separation of EU operations or worse, barring the firm from operating in the EU.“