Google Ramps Up Online Shopping, Faces Scrutiny in Europe

Google has tried to compete with Amazon in online shopping four times since 2013. But, with shoppers stuck at home during the COVID-19 pandemic, the company now sees another opportunity. To lure sellers, Google said it would waive sales commissions, which range from 5 percent to 15 percent, and let retailers use third-party payment and order management services like Shopify. In the European Union, meanwhile, Google is facing the demand that it “make major concessions” related to its $2.1 billion purchase of Fitbit, including how it uses customer data for search and advertising. Continue reading Google Ramps Up Online Shopping, Faces Scrutiny in Europe

EU’s Antitrust Probe Expands to Include the Internet of Things

The European Union’s antitrust unit has broadened its focus of Big Tech companies to include voice assistants such as Siri and Alexa and the growing number of connected Internet of Things (IoT) devices. The EU’s competition commissioner Margrethe Vestager noted the threat of a big company pushing the market until “competition turns into monopoly.” With regard to IoT, she pinpointed voice assistants as the “center of it all,” but included any digital device that records consumer data from Apple Watch to an Internet-connected refrigerator. Continue reading EU’s Antitrust Probe Expands to Include the Internet of Things

Privacy Shield: Top EU Court Strikes Down Data Transfer Pact

The European Union’s top court voided a transatlantic data-sharing pact this week, ruling that EU residents’ data, when moved to the U.S., are not sufficiently protected from that government’s surveillance. The legal battle began in 2013, when privacy activist Max Schrems complained to the Irish Data Protection Commissioner, pointing to Edward Snowden’s leaks as proof that U.S. law did not protect against scrutiny. Countries outside of the European Union and companies that want to move EU data abroad must now meet strict EU data laws. Continue reading Privacy Shield: Top EU Court Strikes Down Data Transfer Pact

European Union Court Overturns 2016 Decision Against Apple

The European Union overturned a 2016 decision that ordered Apple to make good on $14.9 billion in unpaid taxes to Ireland. Apple selecting Ireland as its European base to avoid taxation was the genesis that eventually led to the decision. The European Commission’s top antitrust regulator Margrethe Vestager accused the arrangement of being an illegal subsidy not available to Apple’s rivals and demanded that Ireland recover 10 years of back taxes. Amazon and Google have pending court appeals to overturn similar EU decisions. Continue reading European Union Court Overturns 2016 Decision Against Apple

European Union, U.K. Seek New Ways to Regulate Big Tech

After failing to have much of an impact on Google with its $8+ billion fine, the European Union devised new regulations, the Digital Services Act (DSA), to rein in Amazon, Apple, Facebook and Google. The new strategy is to create basic rules for data-sharing and digital markets operations. The U.S. is preparing another case against Google, and the U.K.’s Competition and Markets Authority (CMA) is calling for a “new pro-competition regulatory regime” to control Facebook, Google and other Big Tech companies. Continue reading European Union, U.K. Seek New Ways to Regulate Big Tech

Big Tech Firms Face More EU Scrutiny, Facebook Loses Case

The European Union increased its efforts to regulate major U.S. technology companies, including Amazon, Apple and Google, with a new tool that allows it to investigate any potential antitrust issue and force changes without proving illegality. EU antitrust head Margrethe Vestager warned that the tech behemoths potentially risk being broken up as a “last resort” if they don’t adhere to the rules. Meanwhile, a German high court ruled against Facebook finding it abused its social media dominance to illegally harvest user data. Continue reading Big Tech Firms Face More EU Scrutiny, Facebook Loses Case

Apple is Next Target of European Commission Investigations

European Commission executive vice president in charge of competition Margrethe Vestager is ramping up her scrutiny of U.S. tech giants, including Apple and Amazon. She’s currently targeting Apple’s “gatekeeper” position with third-party apps and Apple Pay. She is also looking more closely at Amazon’s position in online retail. Bloomberg Intelligence antitrust analyst Aitor Ortiz, however, noted that the $9 billion fine she levied against Google didn’t stop the tech giant from continuing to dominate search. The fines “don’t really have a deterrent effect,” he concluded. Continue reading Apple is Next Target of European Commission Investigations

Chinese Cities Invest in National Campaign for Advanced Tech

China’s Ministry of Industry and Information Technology will invest at least $1.4 trillion in the next five years in advanced technologies; more than a dozen Chinese municipalities this year pledged 6.61 trillion yuan ($935 billion) to achieve this goal, for projects on artificial intelligence, data centers and mobile communications. The country’s BeiDou navigation network will be complete this month when the final satellite goes into orbit. Premier Li Keqiang said the campaign is the Communist Party’s top priority. Continue reading Chinese Cities Invest in National Campaign for Advanced Tech

Facing Increased Scrutiny, Big Tech Seeks Political Support

While federal regulators are scrutinizing Amazon, Facebook and Google, the Big Tech companies are fighting to protect themselves by helping to fund a wide range of political groups that act as allies. One such group is the Connected Commerce Council (3C), a Washington-based nonprofit that describes itself as an advocate of small businesses — but also counts Amazon, Facebook and Google as “partners.” Meanwhile, the European Commission is reportedly going to levy formal antitrust charges against Amazon in the next two weeks. Continue reading Facing Increased Scrutiny, Big Tech Seeks Political Support

President Orders Investigation of Foreign Taxes on U.S. Firms

The Trump administration stated that it will open an investigation into digital taxes levied by foreign governments on American commerce. U.S. technology companies such as eBay and Google, among others, are most likely to be impacted. U.S. Trade Representative Robert Lighthizer will conduct the investigation into the European Union as well as Austria, Brazil, Britain, the Czech Republic, India, Indonesia, Italy, Spain and Turkey.  The investigation takes place amid ongoing global negotiations for a consensus solution. Continue reading President Orders Investigation of Foreign Taxes on U.S. Firms

EU Commissioner Holds Facebook Liable For Disinformation

European commissioner for internal market Thierry Breton advised Facebook chief executive Mark Zuckerberg that, if he and his company do not redouble efforts to rid the platform of disinformation, they will be subject to tougher rules. “When you are the [chief executive], at the end of the day, you are the only one to be responsible, no one else,” said Breton at an online event organized by the Centre on Regulation in Europe (CERRE).  The two had a face-to-face meeting two months ago in Brussels. Continue reading EU Commissioner Holds Facebook Liable For Disinformation

French Law to Fine Social Media Platforms for Hate Speech

France’s National Assembly passed a law that will fine social media companies up to €1.25 million ($1.36 million) for failing to remove “manifestly illicit” hate-speech posts within 24 hours of notification. Companies can be fined up to 4 percent of their global annual revenue if the violations are “serious and repeated.” The law, which will take effect July 1, also gives France’s audiovisual regulator the right to audit these companies’ systems for removing content. Critics claim “pre-emptive censorship.” Continue reading French Law to Fine Social Media Platforms for Hate Speech

Online Shopping Spikes, Amazon Hires 100,000 New Workers

As the coronavirus fuels a rise in online sales, Amazon plans to hire 100,000 more workers and raise pay for all employees in the U.S. and Canada by $2 an hour. The company’s starting wage is currently $15 per hour in its U.S. fulfillment centers. In the U.K., wages will rise £2 ($2.45) per hour and approximately €2 ($2.24) an hour in many European Union countries. At end of 2019, Amazon employed almost 800,000 full-time and part-time workers. Other companies are also seeing increased online sales as a result of COVID-19. Continue reading Online Shopping Spikes, Amazon Hires 100,000 New Workers

EU’s New Recycling Law Will Cover Laptops, Phones, Tablets

The European Commission is set to extend its eco-design directive to cover laptops, phones and tablets, setting a standard for changeable and repairable parts, dubbed “the right to repair.” It is estimated that, in the European Union, less than 40 percent of electronic waste is recycled. The law currently covers energy efficiency standards for computers, dishwashers, TVs and washing machines. European commissioner for the environment Virginijus Sinkevičius said this Circular Economy Action Plan is a “new economic model.” Continue reading EU’s New Recycling Law Will Cover Laptops, Phones, Tablets

EU Plans to Propose New Regulations on Artificial Intelligence

As the European Union readies to release new rules to govern digital platforms, Big Tech chief executives have made the trip to Brussels to add to the discussion on artificial intelligence. Alphabet chief executive Sundar Pichai, for example, noted during his trip to Brussels that, “while AI promises enormous benefits for Europe and the world, there are real concerns about the potential negative consequences.” With its General Data Protection Regulation (GDPR), the EU has set a standard that others look to follow. Continue reading EU Plans to Propose New Regulations on Artificial Intelligence