Economy & Politics

Digital package aims to limit the market power of tech giants

The EU Commission is tightening its action against the online giants. (Symbol image) Photo: dpa / Jens B├╝ttner


The market power of internet giants like Facebook, Google or Amazon is to be limited in the EU. To this end, the EU Commission presented a comprehensive digital package on Tuesday.

Brussels – Under threat of billions in fines, the market power of Internet giants such as Facebook, Google and Amazon in the EU is to be limited. In addition, the position of consumers should be strengthened and illegal content such as hate speech should be deleted from the Internet. To this end, the EU Commission presented a comprehensive digital package on Tuesday that could reorganize the digital space in the EU and beyond. As a last option, the agency even threatens to smash tech giants.

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The EU Commission is thus tightening its action against the online giants. The last time that comprehensive rules of the game for digital services and online platforms were laid down in the EU were 20 years ago.

“The two proposals serve one purpose: to ensure that we as users have access to a wide range of secure products and services on the Internet,” said EU Commission Vice-President Margrethe Vestager, who is responsible for digital. In addition, fair and free competition should be ensured – online and offline.

Specifically, the EU Commission presented two proposals on Tuesday

Specifically, the EU Commission presented two proposals on Tuesday: a law for digital markets that affects the market power of particularly large platforms; and a law for digital services that addresses more societal issues. It stipulates, for example, that online platforms must make their advertising and their recommendation algorithms more transparent. There should also be rules for deleting illegal content or goods. Large services have to meet more requirements than small ones.




The law for digital markets is aimed at the particularly large providers. Among other things, it stipulates that a number of methods considered unfair are prohibited. This includes, for example, the ban on deleting pre-installed apps. In addition, these gatekeepers would have to take certain measures in order for the software to work with the services of other providers. The rules provide for penalties of up to ten percent of a company’s worldwide annual turnover. In case of hardship, the EU Commission even threatens to break it up.

Before the proposals of the EU Commission are implemented, the EU states and the European Parliament have to agree on a line.

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