- There is a real willingness and wide political support in the EU to set the highest global standards when it comes to tech regulations.
- But the pipeline for tougher regulation doesn’t end there.
- This makes it easier to take quicker action in this field.
- This is an expression of Europe’s geopolitical power in a world it wants to maintain some influence Jeremy Ghez professor at H.E.C. Paris More often than not, political action mirrors certain citizens’ demands, and Europeans are some of the most supportive when it comes to regulating tech giants.
The 27-member bloc has been at the vanguard of tightening regulations on major technological companies, and it shows no indications of softening its stance. More regulation is on the way, and Silicon Valley behemoths like Google may soon be forced to change their business models as reported by CNBC.
New AI
While the European Union may be short on tech behemoths, it is not short on tough tech regulation.
Despite the lack of a federal data privacy law, California became the first state to implement personal data protection equivalent to the GDPR in 2020.
It unveiled a new strategy in December that will force internet behemoths to bear responsibility for the material they publish on their platforms, as well as promote fairer market competition, considering how powerful some of these corporations have become.
The proposed legislation, known as the Digital Services Act and Digital Markets Act, could become law as early as next year and will force businesses to adapt how they operate. One of its probable consequences is the termination of self-preferencing, which occurs when an app search results in an Apple product displaying Apple-developed possibilities.
“This package is going to be a game-changer.”
As more digital behemoths develop and implement new AI, this is becoming increasingly critical.
Political and public support
“When it comes to tech laws, the EU has a genuine desire and broad political support to set the best global standards.”
This makes it easy to take action in this field more quickly.
Political action frequently reflects citizens’ desires, and Europeans are among the most receptive when it comes to regulating tech behemoths.
Concerns about data security have developed in recent years as a result of various incidents.
This includes the Cambridge Analytica-Facebook scandal that broke in 2018, in which users’ data was used to try to sway election results.
In the EU, there are around 450 million consumers.
Why the EU is so keen?
“The EU is regulating platforms to address both the impact of platforms on society and competitiveness,” said Nathan Furr, an associate professor at INSEAD.
However, he said that the EU is “asking, or should be asking, why there are so few European platforms, and how to support European platforms, given their economic weight.”
Many European leaders, as well as specialists in the tech industry, have been asked why the continent lacks a really global digital behemoth.
There are a few, such as Spotify, Zalando, Skype, and Krampf, but they don’t have the market share that Apple or Amazon do.
Regulating the big actors, regardless of where they come from, helps the EU to play a role on the global stage.
“This is an indication of Europe’s geopolitical power in a world where it wishes to keep some influence,” H.E.C. Paris’s Ghez explained.
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Source: CNBC
