The EU’s internal market commissioner sent a strong message to Facebook CEO Mark Zuckerberg to comply with the bloc’s values or face stringent regulations.
In a livestreamed debate hosted by the Centre on Regulation in Europe on May 18, EU Commissioner Thierry Breton spoke with Zuckerberg about the role of big technology companies in coronavirus recovery efforts.
Breton told Zuckerberg the EU has “clear and strong values” that platforms must work within to build better governance in the digital age.
“I think it’s extremely important to anticipate what could create some ‘bad reaction,’ which will force us to regulate,” Breton said. “Let’s speak about taxes. I have been a CEO myself. And I always tell to my team, ‘Don’t try to be too smart. Pay taxes when you have to pay taxes; don’t go to [tax] havens. Pay taxes; don’t be too smart with taxes.’ It’s an important issue for countries where you operate — so don’t be too smart.”
While the debate focused on Facebook’s role in the spread and mitigation of disinformation, data sharing and privacy concerns, and small business support, Breton kept circling back to the issue of accountability.
“[Digital] platforms are playing a huge role [in the coronavirus recovery]. If they want to continue playing these roles, they have to learn to discuss with us, cooperate with us,” Breton said. Later, he added, “At the end of the day, if we cannot find a way, we will regulate, of course.”
While touting efforts to support small businesses and improve content moderation on Facebook, Zuckerberg stayed vague on questions concerning regulations. He acknowledged there is “an increased need for partnership” between Big Tech and governments, but emphasized collaboration over new regulations “written into law.”
Breton urged Zuckerberg to help the EU internal market and not play the role of Facebook's “gatekeeper controlling others to play with.” For the digital market and society at large, “just because something is not prohibited, it does not mean that it’s authorized,” he said.
The EU is working on a new Digital Services Act, set to be released at the end of 2020. The plan, according to Commission President Ursula von der Leyen’s political guidelines for the European Commission through 2024, will “upgrade [the EU’s] liability and safety rules for digital platforms, services and products.”
Meanwhile, 140 countries belonging to the OECD’s inclusive framework on base erosion and profit shifting are set to meet in October to discuss an agreement on a two-pillar solution to address the tax challenges of the digital economy.