As per the new rules laid down by European Union (EU), Google and Amazon will have to tell companies how they rank products on their platforms. Besides, Facebook and other tech giants are required to be more transparent about their terms and conditions.
The platform-to-business (P2B) law, proposed by the European Commission (EC) in April 2018, is the latest move by Europe to keep a check on the online giants so that they don’t indulge into malpractices and harm the small rival firms. The new rule will apply to more than 7,000 online companies and will cover e-commerce market places, app stores, social media and price comparison tools.
Some of the major platforms who will be impacted include Google Play, Google Shopping, Google Search, Apple’s App Store, Microsoft Store, Microsoft Bing, Amazon Marketplace, eBay, Fnac Marketplace, Instagram, Skyscanner, Yahoo and DuckDuckGo.
After getting a nod from law makers at the European Parliament, the new law will be officially stamped by European Council, before it comes into effect.
Very strong support in @Europarl_EN for new rules on online platforms' trading practices. These will benefit millions of European companies relying on digital platforms to reach their customers. Thank you to all of the parties involved!
— Andrus Ansip (@Ansip_EU) April 17, 2019
➡️https://t.co/Wrw1nlyVrV #p2b #SME pic.twitter.com/BukH2lgNsK
Speaking on the occasion, the EC’s Digital Chief – Andrus Ansip said, “As the first-ever regulation in the world that addresses the challenges of business relations within the online platform economy, it (the law) is an important milestone of the ‘Digital Single Market’ and lays the ground for future developments.”
The rules comprise of a blacklist that has details of all the unfair trading practices. The new law also makes it compulsory for the companies to set-up internal systems that can ensure compliance to the law.
The tech lobbying group, EDiMA which had successfully lobbied for the light regulatory regime has welcomed the move.
Speaking on the move, EDiMA said, “This new regulation will positively contribute to achieving the digital single market, while reinforcing trust and predictability online.”
The member of EDiMA include Amazon, Apple, eBay, Expedia, Facebook, Google, Microsoft and Mozilla.
