BRUSSELS, Nov 10 (Businesshala) – Draft EU rules requiring US tech giants to share information with rivals could put companies’ intellectual property and trade secrets at risk, the United States government said in a report seen by Businesshala. Caveats in the document.
The paper said requiring gatekeepers — companies that control data and access to their platforms — to change their business practices and the design of their software could have security and consumer protection implications.
The document, circulated to EU countries, the European Commission and the companies involved, outlines US concerns that the rules will come at the expense of US companies.
Frustrated by the slow pace of the investigation, EU antitrust chief Margaret Vestager called for rules to rein in Amazon (AMZN.O), Apple (AAPL.O), Alphabet (GOOGL.O) entity Google and Facebook (FB.O). Two sets have been proposed. ,
The Digital Markets Act (DMA) produces a list of do’s and don’ts, each aiming directly at a company’s core business model, reinforced by fines of up to 10% of global turnover.
The Digital Services Act (DSA) forces tech giants to do more to tackle illegal content on their platforms, with up to 6% of global businesses fined for non-compliance.
“DMAs will in certain circumstances require gatekeepers to provide competitors with information that is protected by intellectual property and trade secret law,” the document said.
“However, the DMA does not include specific language relevant to the protection of intellectual property, including trade secrets.”
“As a result, there is a concern that the DMA may in certain circumstances override existing protections for intellectual property rights in EU law, including the protection of trade secrets.”
The US government declined to comment on the document.
“Broadly speaking, the Biden administration is consulting with stakeholders and reviewing both the DMA and the DSA,” a US government official told Businesshala.
“We have also made it clear that we oppose efforts designed specifically to target only US companies,” the official said.
The document warned against imposing heavy obligations on cloud service providers to be neutral transporters of data from one point to another and that the EU should reconsider the size of fines and penalties.
On the DSA, the paper stated that illegal material should be defined narrowly “to ensure that it will not be a source of conflict of law nor benefit to Member States who have tried to curtail freedom of the press and association.” showed a trend”.
The paper said the rules should clarify the geographic scope of a platform’s obligation to remove illegal content, amid concerns that an EU country could issue a pan-European order.