Big Tech Faces EU Scrutiny Over Online Scams

Eva Popov -

The European Union is making headlines with its latest demand for explanations from some of the world’s largest tech companies, including Apple, Google, and Microsoft. This inquiry comes as Brussels seeks transparency on how these giants are addressing financial scams that proliferate online.

EU’s Unwavering Stance

As part of a bold move under the EU’s Digital Services Act (DSA), requests have been sent to tech titans and platforms like Booking to disclose how they prevent scammers from misusing their services. The DSA represents a significant legal framework aiming to ensure that Big Tech plays a role in curbing illegal activities. According to The Economic Times, the European Commission’s action is about protection, not punishment.

A Growing Concern

The EU’s concern centers on potential abuses, such as fraudulent apps masquerading as real banking services and misleading search engine results directing users to scam websites. Microsoft’s commitment to safety, Google’s daily blocking of millions of scammy results, and Booking’s decrease in phishing scams showcase the companies’ ongoing efforts.

Trump vs. EU Regulations

There’s tension across the Atlantic, with former U.S. President Donald Trump threatening tariffs against European regulations perceived as targeting American firms. While some argue these rules are an overreach, tying them to censorship, the EU firmly defends its stance: rules must equally apply both offline and online.

This extensive Act, along with the Digital Markets Act, isn’t solely focused on American companies. Chinese platforms like AliExpress are also facing scrutiny under the same lens. The EU stresses its commitment to fair digital competition and maintaining comprehensive probes into major players like Meta, X (formerly Twitter), and TikTok.

Probing for the Future

As Henna Virkkunen, the EU digital chief, hinted, ongoing investigations will soon unveil more findings, particularly involving X. The coming months could reveal further repercussions for non-compliance, emphasizing Europe’s dedication to a safer online environment.

By reinforcing its digital laws, the EU underscores its determination to adapt regulatory frameworks to the digital era’s complexities, promising persistent vigilance over tech giants.