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New legal rules place spotlight on online giants

The biggest online companies, such as Amazon and Google, will have to clearly explain how they rank the products on their platforms in search results to prevent unfair practices, under new European Union rules approved yesterday. 

The platform-to-business law, proposed by the European Commission in April last year, is the latest action by the EU to ensure that smaller online players are treated fairly.  

The new rules, which will cover 7,000 online companies, target ecommerce platforms, social media, app stores and marketplaces. 

Online platforms will also have to clearly disclose to consumers whether they are buying from a company or an individual,  “so they know what protection they will benefit from if something goes wrong”.

The European Parliament approved the new laws on Wednesday (18 March). The European Council will also have to give the green light in the next few months before the rules can take effect. 

 

 

 

 

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