Above the Fold

The EU Gets Tougher on Tech — Should We Follow Suit?

Across the pond, the EU (European Union) and the United Kingdom have proposed two sweeping policies that give regulators the power to hold tech and digital information “gatekeepers” accountable to new standards unseen anywhere else in the world. The new legislation, dubbed the Digital Services Act and Digital Markets Act, not only defines specific companies as gatekeepers of critical data, news and/or personal information, but also seeks to dramatically change the way they operate. It will address how less-powerful companies and consumers are able to interact and integrate with them, along with how large entities like Google, Facebook, TikTok, Twitter, Amazon and others will control the spread of illegal content, and how they handle (and share) sensitive data. 

Simply put, EU regulators want to gain serious control over the digital landscape to make it a safer, more fair place to conduct business. And those who break the rules or refuse to follow guidelines could face hefty fines, forced breakups or even a complete ban from operating in the bloc. While the final laws could take years to enact, the new guidelines are likely to up the ante for regulators elsewhere.

Domestically, we’ve already seen a bevy of antitrust laws from the federal government which challenge the dominance of many top digital players. The Federal Trade Commission is seeking a permanent injunction to break up Facebook, forcing the sale of Instagram and WhatsApp. At minimum, it seems global regulatory momentum is growing, and the new EU propositions increase the pressure on big tech. 

Three Things 

1. Facebook Goes “Old School” on Apple – Mark Zuckerberg took the fight against Apple’s upcoming iOS privacy changes to a whole new level — newspapers. The hyper-digital company took out full-page paper ads in the Wall Street Journal, the Washington Post and the New York Times saying the changes will be devastating to small businesses. Apple’s new rules will allow users to choose whether or not they want to be tracked.
2. A-Rod Apparently Looks to Hit a Hotel Home Run – Former New York Yankee Alex Rodriguez is partnering with a Miami-based private equity firm to invest roughly $650 million to acquire and develop properties through a relationship with Hilton Worldwide Holdings Inc. Mr. Rodriguez reportedly sees a coming rebound in the space once COVID-19 restrictions lift.  
3. Oceana Concerned About Environmental Impact of Online Shopping – Ocean advocacy organization Oceana released a report estimating Amazon was responsible for generating 465 million pounds of plastic waste last year. Amazon disputes the figure as inflated, but is working on ways to cut back its plastic and cardboard with more recyclable options. 

Did You Know?

On This Date Back in 1903…

The Wright Brothers made the first successful flight of a self-propelled, heavier-than-air aircraft 117 years ago today. The 12-second  flight covered just 120 feet and was launched near Kitty Hawk North Carolina for its calm wind and soft sand. The flight, which was less than the width of a football field, changed the world forever. The brothers tested more than 200 wing and airframe designs before taking to the air. Just three days before the flight, the plane was damaged when the engine stalled, but was repaired for its Dec. 17 debut. Neither Orville nor Wilbur attended college, but managed to run several successful businesses to help finance their passion for aviation.