The United States government is warning against rules the European Union has drafted that could risk companies’ intellectual property and trade secrets.
According to ReutersThe Digital Markets Act (DMA), which sets forth a list listing what companies are allowed and not permitted to do, is subject to a 10% fine for non-compliance. The Digital Services Act (DSA) targets “illegal” content online, with a fine of up to 6% for noncompliance.
The United States is warning against the rules–saying they fail to provide protection for intellectual property and trade secrets while exclusively targeting U.S. companies.
According to the U.S. document, “DMA” would make gatekeepers responsible for providing information to rivals that could be considered trade secrets.
“The DMA however does not contain specific language related to protection of intellectual properties, trade secrets, or other sensitive information.”
The DMA is therefore likely to override any existing IP rights protections, such as trade secret protection, under certain conditions.
It is not clear if the United States will respond officially to the EU.
“Broadly speaking, the Biden administration has been consulting with stakeholders and reviewing both the DMA and the DSA,” a U.S. government official told Reuters in regards to the Biden administration’s response to the rules.
The official stated that they had also made it clear that they oppose any efforts to only target U.S.-based companies.
Facebook whistleblower Frances Haugen has been an advocate for more regulation online and said the rules could be a “digital global standard.”
Haugen stated that the Digital Services Act, which is currently before Parliament, has the potential of being a global standard for digital services.
It can be used to inspire countries like my country to create new laws that will protect our democracy. However, the law must be clear and enforced. “We will lose the once-in-a-generation opportunity to align democracy and technology in the future,” she stated to the EU.
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