EU targets Big Tech with ‘hit list’ facing tougher rules – FT

Early Monday morning in Asia, the Financial Times (FT) came out with the news suggesting further hardships for the big technology companies like Facebook and Apple from the European Union’s (EU).

The plans, which can include 20 major internet companies, will force the tech giants to share data with rivals and an obligation to be more transparent on how they gather information, said the news. The update also gives relief to the small technology companies. The criteria for the list include the market share of revenues and the number of users.

Key quotes

As part of the powers, the EU is seeking to go beyond just fines, which often are seen as just the cost of doing business. Instead, Brussels wants to be able to move quickly to force the likes of Amazon and Apple to ensure they give access to competitors and that they share data with rivals.

In extreme circumstances, the EU will seek to address structural problems, by breaking up Big Tech, or by forcing companies to sell units if they are found to be behaving in detriment of rivals.

The list will be heavily skewed towards Big Tech in the US, a move that will be seen as controversial and risks adding to friction between Washington and Brussels, according to people familiar with the discussions.

FX implications

The news should ideally challenge the market’s risk-tone sentiment, which in turn weighs on the S&P 500 Futures, currently down 0.15% to 3,467. This can also increase the US dollar’s safe-haven demand and drag EUR/USD southwards. The major currency pair is at 1.1816, down 0.10% intraday, by the time of the press.