EU takes on big tech firms with new legislation
Under new European regulation big tech companies will face large fines if they do not take more responsibility for policing the internet.
The EU will require large tech firms, such as Facebook and Amazon, to vet third-party suppliers and share data with authorities and researchers on how they moderate illegal content, according to a document seen by the Financial Times.
If they refuse to comply they could face fines of up to six per cent of their turnover.
Regulators have for the first time defined “very large platforms” as those with more than 45m users, and they will have to appoint one or more compliance officers.
“Very large platforms now have a systemic role in amplifying and shaping information flows online and for the largest part of EU citizens,” said the draft regulation. “Such very large online platforms should therefore bear the highest standard of due diligence obligations, proportionate to their societal impact and means.”
It comes amid a transatlantic crackdown on big tech firms. Last night the US Federal Trade Commission announced nearly every US state sued Facebook claiming the tech giant had broken antitrust law.
In the complaint, the 46 states, Washington DC and Guam also asked for Facebook’s acquisitions of Instagram and Whatsapp to be judged to be illegal.
The US Justice Department also sued Google in October, accusing the firm of using its power to fend off rivals.
The lawsuits are the biggest antitrust cases in a generation, comparable to the case against Microsoft in 1998 which the government eventually settled.