Watchdog highlights shortcomings in EU rules to curb tech companies

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A watchdog has criticised the EU's new rules that aim to curb the power of Alphabet unit Google, Facebook, Apple and Amazon, potentially providing ...

A watchdog has criticised the EU's new rules that aim to curb the power of Alphabet unit Google, Facebook, Apple and Amazon, potentially providing scope for companies that are targeted to challenge them.

The Regulatory Scrutiny Board, which reviews policies and legislation proposed by the European Commission, eventually gave its green light to the draft rules, but also said they did not clarify how online gatekeepers are singled out.The European Commission's draft rules, announced last week, are its most serious attempt yet to rein in tech companies, relied on by thousands of companies and millions of Europeans.

"It should consider the negative consequences of curtailing the size advantages following from network economies and economies of scale for consumers," the board said. "Some of these appeals might well succeed and some will likely fail. And they will in any event delay effective compliance with the rules," he said.

 

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