Big tech companies are "threatened" by the European Union + Apple is now in trouble in China.
Amazon $AMZN, Alphabet $GOOG, Apple $AAPL, Microsoft $MSFT, Meta $META and ByteDance (is a Chinese internet technology company) now have six months to comply with stricter market rules.
European Internal Market Commissioner Thierry Breton
The European Commission, the EU's executive arm, on Wednesday appointed six companies with annual sales of more than 7.5 billion euros ($8 billion) or 45 million monthly active users within the bloc to comply with stricter market rules - for example, they can't prevent users from uninstalling any pre-installed software or apps or treat their own services more favourably. They have 6 months to do so.
In addition to the Digital Markets Act, the EU has also introduced the Digital Services Act, which aims to make platforms legally responsible for the content they transmit. Failure to comply with these requirements could lead to hefty fines and temporary bans on the European market.
"If these companies don't comply, and I hope all of them will comply, we will have the possibility to fine them up to 10% of their global revenues," Thierry Breton, the EU's internal market commissioner, told CNBC on Wednesday. The fine could be increased to 20% if the company in question continues to fail to comply with the rules. The next step then if that didn't work would be a temporary ban.
"And if they continue, yes, we have tools, including breaking up these companies, but I never want to use them. And I can tell you that the discussions we're having with all of these companies are professional and I believe they're moving in the right direction," Breton said. However, as you can see from the direct sentence, in my opinion it is bububu, but all parties want to come to an agreement and I don't believe any of the companies will have problems here in Europe.
For the record, other companies could be added to this list, including Netflix, PornHub and Airbnb.
I'll add to this post a message on Apple $AAPL, which is currently catching up to local politics and the eternal "haggling" with the west. Its decline came after reports that Beijing in recent weeks told employees of some central government agencies to stop using their Apple mobile phones at work.
The broader ban is not surprising and shows how China is trying to limit Western companies' market access to the country, said U.S. Representative Mike Gallagher, chairman of the House of Representatives panel on China. "This is textbook Chinese Communist Party behavior - promote the PRC's (People's Republic of China) national champions in telecommunications and slowly reduce market access for Western companies," Rep. Gallagher told Reuters.
Well, what can I say, it's just China, and we find these various bans and such on a fairly regular basis. I'm certainly not worried about Apple's strength, there are enough companies already eyeing the Indian market and moving more there anyway. 😊
And what do you have to say about such news? 😊🍀
