New Rules for Companies in the European Union
New Rules for Companies in the European Union

New Rules for Companies in the European Union

23 april, 20221 minute to read
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New European Union Internet rules compel Alphabet (GOOGL.O), unit Google, Meta (FB.O) and other major online platforms to curb illegal content.

The Digital Services Act (DSA) was passed on Saturday. It complements the previously passed Digital Markets Act (DMA), which can force Google, Amazon, Apple, Meta and Microsoft to change their core business practices in Europe.

The new rules prohibit targeting ads aimed at children and sensitive information such as religion, gender, race and political views. It also bans the use of tools that mislead people into giving personal information to companies online. The companies shoulder the costs of enforcing the law themselves. They will have to pay an annual fee of up to 0.05% of yearly revenue worldwide.

Besides, the companies could be forced to transfer information related to their algorithms to regulators and researchers.

Companies could face fines of up to 6 percent of their worldwide turnover for violating the rules, and if they violate them again, they could be banned from doing business in the EU.

The DSA will be enforced in 2024.

23 april, 2022
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