Tech firms say EU rules should ensure they are regulated in their bases

Proposed European Union rules targeting tech companies should ensure that they are regulated in the EU country where they are based, Twitter, online video platform Vimeo and three other companies said on Thursday.

Tech companies are concerned that European countries seeking to grab regulatory power over them may try to amend the “country of origin” principle in the Digital Services Act (DSA) draft.

Under the principle, companies including Twitter, Apple , Alphabet unit Google and Facebook are regulated in the Republic, with companies with their European headquarters here following Irish law. Likewise, Amazon is subject to Luxembourg's supervision.

Some countries that have a tougher approach to the regulation of the tech sector have sought to be able to “reach across” to apply national enforcement measures to digital giants based in Ireland.

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“A strong country of origin principle supports a diverse online marketplace,” Twitter, Vimeo, Automattic – parent company of online publishing tool WordPress and Tumblr – Czech search engine Seznam and German social media platform Jodel said in a joint statement.

“Without it, we risk entrenching the largest players, reducing consumer choice and irreparably splintering the digital single market,” they said.

They said the Digital Services Act, which requires US tech companies to do more to police the internet for illegal content, with fines of up to 6 per cent of global turnover for non-compliance, should set out a standard definition for illegal content and a harmonised enforcement framework across the EU.

The European Commission will kick off negotiations with EU countries and politicians next year before adopting the Act. – Reuters