Stricter rules for Booking. He is a gatekeeper, the EC decided

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In 2023, two new laws began to apply within the European Union (EU), which are referred to as a whip for Internet giants. These are namely the Digital Services Act (DSA) and the Digital Markets Act (DMA).

While the DSA aims to ensure transparency, user safety and accountability for online platforms, the DMA is a competition law setting clear rules by which large online platforms can operate.

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Software

Booking will therefore be under the scrutiny of the EC to ensure that it cannot negatively influence smaller competition. The accommodation platform now has a six-month deadline, within which the EC must submit a detailed report on compliance with the rules stemming from the DMA.

Booking will thus have to comply with the same obligations as, for example, Alphabet, Amazon, Apple, ByteDance, Microsoft or Meta Platforms. These businesses had to submit a detailed report on their operations by March 7 this year.

The EC is now also discussing the social network X. Whether this internet platform belonging to the American multi-billionaire Elon Musk will also be designated as a gatekeeper, the commissioners will decide over the next five months.

Chinese businesses

The list of large Internet companies that must comply with EC rules is constantly growing. At the end of April, according to the EU regulation on digital services (DSA), the Chinese clothing retailer Shein, for example, got on the list.

His inclusion was no surprise. Fashion retailer Shein announced the month before last that it has an average of 108 million monthly active users in the European Union (EU). At the same time, the company’s representatives confirmed that they are negotiating with the EC about their designation under the DSA.

“We share the EC’s ambitions to ensure that EU consumers can shop online without fear and we intend to play our part in this,” fashion retailer Shein said in a statement.

The Chinese retailer now has a four-month deadline to comply with stricter DSA rules. So Shein only has until the end of August.

The DSA regulation has recently also resonated with other Chinese online stores, which are also showing significant growth in Europe.

Eurocommissioners have already become interested, for example, in the online store Temu, which invites you to shop literally for a few crowns. It is also enjoying growing popularity in the Czech Republic. Thanks to very low prices and diverse offers, this platform attracted an average of 75 million active users from Europe after only six months.

High fines, prohibition of activity

Under the current rules, known as the Digital Services Act (DSA), companies with more than 45 million monthly users on their platforms must make increased efforts to counter the spread of illegal content and counterfeit products.

Shein will thus begin to be bound by the same rules in Europe as other large technology companies – Meta Platforms, Apple, Google, the X network or TikTok.

In case of violation of the obligations arising from the DSA, companies face a fine of up to six percent of their annual turnover. At the same time, turnover is calculated not only within the EU, but worldwide. If there are repeated violations, the EU can even ban companies from operating altogether.

China’s Shein will be bound by EU rules

Internet and PC

The article is in Czech

Tags: Stricter rules Booking gatekeeper decided

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