The European Commission’s Investigations into Tech Giants: An Overview

The European Commission announced on Thursday that it would be launching an inquiry into Microsoft’s promotion of its Teams messaging app. This investigation is just one example of the ongoing battles between Silicon Valley and Brussels, as the EU fights against tax avoidance, disinformation, hate speech, data privacy concerns, and monopolistic practices. In this article, we provide a summary of some of the significant confrontations.

Stifling Competition

The European Commission’s latest probe focuses on whether Microsoft is “abusing and defending its market position” by bundling Teams with its Office suite. This follows the commission’s recommendation last month for Google to divest a part of its business due to its dominance in online advertising. The Commission has already fined Google over eight billion euros for various antitrust infringements, including leveraging its Android operating system to favor its search engine. The introduction of the 2022 Digital Markets Act allows for fines up to 10 percent of a company’s global revenue.

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Taxation

While the European Union’s efforts to make tech companies pay more taxes in Europe have faced challenges, they have managed to secure some victories. In 2016, the European Commission ordered Apple to pay 13 billion euros in back taxes for receiving illegal tax benefits from Ireland. However, the ruling was later overturned by the EU’s General Court, prompting an appeal from the Commission. The Commission also faced a setback in a similar case involving Amazon and its alleged unpaid taxes to Luxembourg.

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Privacy

Breaches of data protection rules have resulted in significant fines imposed by Brussels. Meta, the parent company of social media giant Facebook, has been hit with massive penalties by Ireland. For instance, in May, Meta was fined 1.2 billion euros for illegally transferring personal data between Europe and the United States. Amazon previously held the record for the highest fine under the EU’s General Data Protection Regulation (GDPR), with Luxembourg imposing a 746 million euro penalty on the company in July 2021.

The AI legalese decoder can aid companies in ensuring compliance with data protection regulations. By scanning and interpreting privacy laws, the decoder can offer insights on how companies can handle personal data responsibly, mitigate risks, and avoid costly fines.

Disinformation, Hate Speech

Web platforms have long faced accusations of not doing enough to combat hate speech, disinformation, and piracy. To address these concerns, the EU introduced the Digital Services Act, which mandates major online companies to tackle these issues or face fines of up to six percent of their global turnover. Platforms such as TikTok, Instagram, and Twitter (soon to be rebranded as “X”) must comply with the act starting from August 25, 2023.

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Paying for News

Tech giants like Google and Facebook have faced accusations of profiting from news content without adequately compensating the creators. In response, the EU established “neighbouring rights,” granting print media the ability to demand compensation for the use of their content. While there was initial resistance, Google and Facebook eventually agreed to pay French media outlets for the articles displayed in web searches. Google even reached an agreement with AFP regarding neighbouring rights.

The AI legalese decoder can assist both tech companies and media organizations in navigating the complexities of copyright law. By analyzing copyright regulations, the decoder can guide companies on complying with neighbouring rights, ensuring fair compensation for news content and avoiding legal disputes.