Germany, France and the Dutch want to have more say in start-up deals struck by tech giants

Author: Foo Yun Chee

BRUSSELS (Reuters) – Draft rules aimed at Alphabet units such as Google, Facebook, Amazon and Apple should be improved to allow regulators to review their takeovers of startup rivals, Germany, France and the Netherlands said on Thursday.

The joint statement by German Economy Minister Peter Altmaier, his French counterpart Bruno Le Maire, French junior minister Cedric O and Dutch Economy Minister Mona Keijzer was published as EU countries and lawmakers prepared to debate the rules proposed by the European Commission.

Tech giants have faced criticism from some for so-called killer acquisitions, in which they buy nascent rivals in order to shut them down.

Ministers said regulators should use the proposed Digital Markets Act (DMA) to address the issue.

“First, establishing clear and legally certain thresholds for gatekeeper acquisitions of relatively low-volume but high-value targets,” they said.

“Second, adapting the substantive test to effectively respond to cases of potentially predatory takeovers.”

They stated that the proposed regulations should give EU countries freedom to fight the so-called Internet gatekeepers and anti-competitive behavior.

The draft rules could come into force next year once the Commission, EU countries and EU lawmakers reach a common position.

France also wants the European Union to tighten rules on illegal content, forcing tech companies to systematically turn over to authorities illegal content they have removed or blocked from their sites.

France has proposed that internet hosting providers be required to store illegal content for the past six months and hand it over to law enforcement authorities in a given country, according to draft amendments seen by Reuters.

The move would strengthen individual member states’ supervisory powers, although it could raise concerns about too many regulators jostling within the EU.

(Reporting by Foo Yun Chee; Additional reporting by Sarah White and Matthieu Protard in Paris; Editing by Bernadette Baum and David Evans)