The EU (European Union) is trying to pass a new law that could help it prevent online platforms from becoming too large or strong enough to surpass their rivals, as per the bloc’s competition chief.
According to Margrethe Vestager, these competition law enforcement seem “backward looking,” and regulators are calling for investigations into past behavior, fines, and suspension of “illegal” behavior by major businesses. Rivals of major corporations also face various obstacles, with complains taking too long to spot and sanction an anti competitive behavior. This delay can cause the rival to face irreparable damage towards their own business operations, as per a FinancialTimes report.
Furthermore, Brussels is set to publish proposals next week, which will allow ‘regulators to go after fast-growing companies,’ which are able to reach a kind of market dominance. Best examples of such cases include giants like Google and Facebook. While the goal is known, it is currently unsure what guidelines or step the EU will take to measure the company’s growth or take action.
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EU’s executive vice-president in charge of the EU’s digital policy, Vestager stated that “It’s a way of introducing a forward-looking dynamic to complement what we do vigorously in enforcing competition law.” In other words, the larger corporations will be subject to a stricter list of obligations than their smaller rivals in terms of public listing. The new obligations may even have major firms be required to share data with their competitors or to the EU ‘gatekeepers’.
Vestager also added that she expects “a lot of pushback from this regulation when we table it because obviously it will restrict some market players and it will put on them new obligations.” She even stated that “this is not about the flag that you are flying” after Booking.com chief executive, Glenn Fogel, called the new regulations a “handcuff” on one of the “very, very, very few tech successes in Europe.”
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