Tech companies are forced to end their preference for themselves

Tech companies are forced to end their preference for themselves

The competition chief suggested in European Union That the big tech companies must change the way they promote themselves as the bloc prepares to review competition rules.

The European Union is set to announce an overhaul of digital regulation later this month, which could hurt business models at major tech companies.

The new rules seek to impose stronger controls on illegal and harmful content, but they also ensure that small businesses can compete against large companies operating in Europe.

And she said (Margaret Westager) Margrethe VestagerHead of European Union Competition Policy: Responsibility comes with power, and part of that is not to promote yourself when your services compete with others.

Technology companies often display their products at the top of internet search engines, which increases the chances of customers choosing their services.

This behavior is known as self-preference and was the reason why Spotify filed a complaint against Apple in 2019.

The Swedish digital music service complained that Apple had misused the dominance of its app store in order to favor its music service and weaken competitors.

This complaint is one of the issues that the European Commission, the EU’s executive arm, wants to address by updating competition rules.

Westager explained that the point is not so much the size of companies as it is about ensuring fair competition in the EU market.

European policymakers have often asked for a review of competition rules, arguing that they are not designed for the digital economy.

Vestager has led numerous investigations against major tech companies since 2015, but there is some frustration among policymakers that the investigations have not brought practical changes.

In 2017, the European Commission fined Google 2.4 billion euros ($ 2.81 billion) for promoting its Google Shopping service rather than allowing similar access to competitors.

Google has made some changes in the wake of the fine, but a study in September showed that not much has changed.

According to the study, less than 1 percent of traffic through Google Shopping was driving users to competing shopping sites.


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