Entrepreneurs are better protected against power platforms
Entrepreneurs are better protected against abuse of power by digital platforms such as reservation and comparison websites, online market places and app stores. The Member States of the European Union have agreed to a proposal that regulates this. That ensures “a fairer economy,” says State Secretary Mona Keijzer (Economic Affairs).
It is now possible that entrepreneurs are removed from a platform for no apparent reason or placed at the bottom of the search results. Technology companies must now be more transparent about this. In addition, there must be better dispute procedures that entrepreneurs can use at no extra cost.
Smaller entrepreneurs are thus better protected and can “do business with confidence online,” says Keijzer. According to the minister, this is important because they increasingly use digital platforms to offer their products or services, also outside their own national borders.
The new rules will also apply to platforms that do not have their headquarters in the European Union, but are active there, such as Facebook, Google and Amazon. Companies have until next summer to comply with the regulation.