Reuters reports that the European Commission is preparing new regulations targeted at online platforms such as ecommerce websites, app stores and search engines. The law’s purpose is to increase transparency in the way big tech companies use data and how they rank search results.
The proposal seeks to address potentially harmful trading practices by online platforms and a lack of effective redress mechanisms for smaller businesses that use them to reach consumers.
The proposal was initially meant to exclude search engines such as Alphabet Inc’s Google and Microsoft’s Bing, but these will now be included given the impact a business’s ranking in search results can have on its revenues.
The proposal will not force companies to disclose their algorithms but just provide descriptions at a general level explaining “how and to what extent the relevant ranking mechanism takes account of the quality of the products and services offered”.
Online platforms will also have to implement a notice period of at least 15 days for changes to their terms and conditions as well as provide businesses with an “individualized” description of the reasons for which they have been de-listed or suspended - for example from Apple’s App Store or Google Play.
The proposal is expected to be published in April 2018, after which it will have to be agreed by national governments and the European Parliament.
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