Amazon, Facebook, Google May Face EU Fines for Illegal Content

Tech giants like Facebook  (FB) – Get Report, Amazon  (AMZN) – Get Report and Google  (GOOGL) – Get Report face fines of up to 6% of their revenue if they do not purge illegal content published on their platforms, according to draft regulations the European Union has proposed.

The EU plans to target platforms that have a “disproportionate influence” on users on the Internet, the Financial Times reported.

The new EU regulations are expected to be announced on Dec. 15, media reports say. 

To be sure, the new rules being formulated under the Digital Services Act would still need approval by member states and European lawmakers.

If Facebook were fined the maximum 6% under the new rules, the social network would face a $4.2 billion payment, based on 2019 revenue, Bloomberg reported.

The rules also called for greater ad transparency and full disclosure to users related to the targeted advertising they see.

The EU is also set to unveil a proposed gatekeeper regulation, under which large platforms with more than 45 million users could face fines or breakups in Europe if they misuse competitor data or engage in other anticompetitive behavior,  Bloomberg reported.

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