According to reports, France and the Netherlands are calling on the European Union to set up a new agency to monitor large technology companies such as Google and Facebook. They need monitoring to prevent these companies from monopolizing the market and making it unbearable for competitors. Analysts say the move has increased pressure on Margrethe Vestager, the EU antitrust commissioner. Currently, Vestager is drafting the Digital Services Act. Furthermore, this Act aims to set basic rules for data sharing and the operation of the digital marketplace.
CĂ©dric O, the French Minister of Digital Affairs, and Mona Keijzer, the Secretary of State for Digital Affairs in the Netherlands, stated in a joint statement that the establishment of such a new institution can contain large technology companies. They can not simply prevent new competitors from entering the market unless they have an objective reason.
Keijzer said: “These large technology platforms may hinder the entry of new companies. They could also limit the freedom of choice for consumers and companies.”
CĂ©dric said:”…Our common goal is to design a framework that addresses the impact of these actors on the European economy and breaks their monopoly.”
Gizchina News of the week
At present, the European Commission has become increasingly tough on large US technology companies. Google and Facebook have all been subject to EU antitrust investigations. In some of these cases, they even have to pay huge fines. In addition, Google’s $2.1 billion acquisition of Fitbit is also under review by the European Union.
According to reports, the Digital Services Act being drafted stipulates that large companies have to share data with competitors. If this is not the case, then they themselves can not use the data to provide special services.
GOOGLE HAS TOO MUCH CONTROL OVER THE SEARCH MARKET
The US Governmentâs Antitrust Subcommittee recently stated that Google has created a huge monopoly empire. This includes favoring its own services and products and suppressing services from its competitors. The committee claims that Google, an Alphabet subsidiary, uses its own services to suppress third-party competitors and dominate all markets from advertising to maps. The report also warns that Googleâs growing cloud business and its acquisition plan for Fitbit may further strengthen this monopoly.
Furthermore, the report concludes that Google, Amazon, Apple, and Facebook enjoy monopoly power. The committee recommends that Congress amend the anti-monopoly law to force them to spin off some of their businesses and make acquisitions more difficult.
