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EU looking for more control over tech giants

(Image credit: Image Credit: Jai79 / Pixabay)

The European Union is drafting new legislation that will give it more control over US technology giants.

According to a report from City AM, the European Commission is getting ready to propose a Digital Services Act by the end of this year, which would give it more oversight and control over companies such as Google and Facebook.

The act will introduce a rating system, which both shareholders and members of the public could use to assess how these large tech companies handle aspects such as content moderation.

In extreme cases, the act will also enable the European Commission to force companies out of the single market completely, as well as to break off or sell their EU operations. A possible use case could be if the tech giant starts abusing its dominant position, at the expense of the competition.

Speaking to the Financial Times, EU commissioner Thierry Breton said extreme measures would only be used in extreme situations.

“There is a feeling from end users of these platforms that they are too big to care. Under certain conditions we may also have the power to impose structural separation," he said.

Tech giants, most of which are American, have come under heavy pressure from EU lawmakers in a number of areas, including data storage and tax.