On January 21, CCTV News reported that the European Parliament passed the Digital Services Law by 530 votes in favor, 78 votes against and 80 abstentions. The Act will then be submitted to the EU Member States for consideration and will be implemented after national approval.
Specific content includes:
Restrict large online companies from using data advantages to send targeted advertising to users without permission;
Restriction of strangulation of companies of the same type;
Large Internet companies are required to strengthen self-examination of illegal content on platforms.
(Source: unsplash)
If these Internet companies violate the rules, the European Commission will have the power to impose a penalty of up to 6% of the company's global sales in the previous fiscal year. Xiao Lei inquired that Apple's revenue in fiscal 2021 was $365.8 billion (about 4.68 trillion yuan), multiplied by 6% is about $21.948 billion (about 140.4 billion yuan), which has exceeded the total market value of many listed companies.
For this "Digital Services Law", Xiao Lei is in favor of raising his hands. Large network companies have a lot of user data on their hands, and they often use this precise big data to target advertising. In this way, they can get more advertising money from advertisers, which accounts for a large part of the revenue of these Internet companies.
Perhaps the most affected are Google, Facebook, Amazon, which rely heavily on advertising to generate revenue. In contrast, Apple and others have been relatively less affected by a lot of hardware businesses.
Not only Are European and American companies susceptible to impact, but also millet, OPPO, etc. are not smallly affected. They have laid out the European market, and the rally in the European market is very gratifying. Xiaomi has always prided itself on being an Internet company, and the hardware profit is not high as Lei Jun said, but the profit of the Internet business has always been very high. If they want to maintain relatively high profits in the European market, it is necessary to improve the competitiveness of hardware and make as much profit from hardware as possible. At the same time, it is also necessary to build a user use ecology so that multiple devices have a better collaborative experience.
The second key move is to limit strangulation of the same type of companies. For example, in the EU market, it is unlikely that things like Didi and Kuaidi mergers will occur in the future, which can give small and medium-sized enterprises more living space, and there will be more innovation in the industry, and enterprises can always ensure competitiveness.