The Economic Times
English Edition
| E-Paper
Search
+

    EU lawmaker backs ‘country of origin’ principle to regulate Big Tech

    Synopsis

    The principle means Ireland is responsible for regulating Apple, Google and Facebook because they have their European headquarters there while Amazon is subject to Luxembourg's supervision.

    Agencies
    The ‘country of origin’ principle is set out in EU antitrust chief Margrethe Vestager's Digital Services Act, which requires US Big Tech firms to do more to police the internet for illegal and harmful content.
    Strasbourg: US tech giants, such as Apple Inc., Google (Alphabet Inc.), Facebook Inc. and Amazon.com Inc., should be regulated by the European Union country where they are based under proposed EU rules, a top lawmaker said on Tuesday, knocking back efforts by some countries to broaden the planned act's scope.

    The country of origin principle is set out in EU antitrust chief Margrethe Vestager's draft rules known as the Digital Services Act which requires US tech giants to do more to police the internet for illegal and harmful content.

    The principle means Ireland is responsible for regulating Apple, Google and Facebook because they have their European headquarters there while Amazon is subject to Luxembourg's supervision.

    France and a few other countries of the EU are seeking to broaden the scope, worried that enforcement concentrated in just two countries may weaken the rules and also slow down decision-making.

    Lawmaker Christel Schaldemose, who is steering the DSA through the European Parliament and has power to amend or add other provisions to it, supports the act's core proposal.

    "It makes sense to keep the country of origin principle," she told Reuters in an interview.

    ALSO READ TECH NEWSLETTER OF THE DAY

    Tech's 'big tobacco' moment; Licious joins unicorn club

    A day after a faulty configuration change knocked Facebook, WhatsApp and Instagram offline for almost six hours, a former employee turned whistleblower testified before a US senate committee, accusing the company of making "destructive choices".

    Read Now

    Schaldemose however wants to go one step further than Vestager by including a ban on some targeted advertising in the DSA.

    "Targeted advertisements that are based on your behaviour on Facebook, for instance, should not be allowed. Advertisements based on the fact that you have visited websites for buying shoes and things like that, classic commercial advertisements should probably be allowed," she said.

    Schaldemoe said she hopes to finalise her draft with other lawmakers in the next two months so she can thrash out a deal with EU countries next year before the proposed rules can be implemented.
    Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.
    The Economic Times

    Stories you might be interested in