SaaS Business Operations

John Miller, Softletter100

John Miller, Softletter100

Rick Chapman

Rick Chapman

EU threatens Big Tech Firms with fines of 10% of turnover

The EU officially unveiled its proposals for digital market regulations in a December announcement, revealing two new pieces of regulation. But what does this mean for most SaaS and Cloud vendors?

The ‘Digital Services Act’ will target tech platforms currently used for ‘’disseminating illegal content, or selling illegal goods or services online.”, with obligations for tech firms to take action to prevent abuse of their systems.

The ‘Digital Markets Act’ will seek to reduce the number of platforms acting as digital gatekeepers to the single market, such as those that block users from un-installing any pre-installed software.

The announcement revealed that tech giants could be fined up to 10% of their annual turnover if found guilty of breaching new EU rules concerning protection of customer data, this is in addition to the announced fines of 2 percent of their global turnover for breaching EU cybersecurity rules.

The Digital Marketing Act is indeed good news for small and medium sized SaaS and Cloud solutions vendors allowing users great flexibility and choice for users. The issue of cybersecurity is one that increasingly these same mid sized companies need to better address. There is debate about impending legislation from the new administration in the US forcing US listed companies to detail their cybersecurity performance.

Join the debate, a webinar is being held discussing these cybersecurity implications for SaaS vendors

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