Reported The Financial Times reports that the European Union is preparing to force major tech companies to share their massive sets of customer data with smaller competitors, citing a draft. Digital Services Law.
The Financial Times said: Companies such as Amazon and Google will not use the data collected through the platform for their own businesses unless they make it available to business users active in the same businesses.
The Digital Services Act is the first comprehensive reform of the European Union’s approach to internet regulation in two decades.
Brussels hopes to set global standards for the digital economy and address the entrenched advantages of major tech companies.
Thierry Breton, the French commissioner for the internal market, said earlier this month that the European Union is preparing a blacklist of behaviors that the platforms should eliminate from their business practices.
Margrethe Vestager, the executive vice president in charge of regulating major tech companies, warned in February that dominant players will have to open their data to smaller competitors.
The draft is an early indication that Brussels has stuck to the ideas on paper and shows that the regulators are competing to fight a battle with Silicon Valley.
The tech giants are likely to be affected by the scale of the European Union’s ambitions to curb corporate powers, with 30 prohibitions or commitments.
Other parts of the draft include a rule that platforms, which are those companies that have enormous power because they run sites or marketplaces that others use to do business, should be able to use the data they collect for narrow purposes only.
The draft said: The platforms may not use the data received from business users for advertising services for any purpose other than advertising services.
The draft suggests that major tech companies may be barred from preferential treatment for their own services on their sites or platforms.
The draft also indicates that companies should not be allowed to initially install their own applications on devices, such as laptops, or force other companies to install their software exclusively first.
Brussels wants the major platforms to allow users to uninstall any apps that are initially installed on devices such as smartphones and PCs.
Brussels will likely face opposition from technology companies, Google suggested In her discussion of the Digital Services Law, the current rules should be updated rather than resorting to looking at distinct regulatory frameworks.