EU Proposes Heavy Fines for Unfair Digital Practices

The European Commission has introduced a draft law aimed at penalizing companies that use unfair commercial strategies in the digital space. The text outlines financial sanctions that could reach 6% of the annual global revenue of offending organizations.

The measure focuses on combating addictive designs and the use of dark patterns that manipulate consumer behavior. The proposal also aims to restrict personalized advertising directed at children while curbing deceptive influencer practices and subscription traps.

The bloc's Justice representative stated that the initiative seeks to ensure competition based on product quality. The central goal is to prevent companies from exploiting user vulnerabilities to gain financial advantages.

The proposal faces criticism from various business sectors that point to potential conflicts with existing legislation. The text must still be debated and approved by member countries and the European Parliament before it can take effect.

These regulatory restrictions increase operational risk for large technology companies with global operations. Higher compliance costs may pressure profit margins for these firms and affect capital flow into risk assets and the crypto market.