
EU flags fly outside the European Commission building in Brussels on Dec. 7, 2020.
Sweeping new EU draft rules will increase the pressure on large tech companies, but debates over their proposed requirements and penalties will likely limit their impact on big tech. The European Commission, the executive arm of the European Union, on Dec. 15 unveiled two complementary pieces of draft legislation, the Digital Services Act (DSA) and the Digital Markets Act (DMA). Broadly, the measures aim to make big tech more accountable and transparent, and to prevent and remediate anti-competitive behaviors. Both proposals establish fines for rule breakers; in the most extreme cases, they threaten temporary operating suspensions and forced divestitures of some of their business lines. The DSA encompasses all companies that offer a wide range of digital services in the European Union, although the largest tech giants face special rules.