EU Presses Tech Firms on Search Results, Fake News

Europe proposes legislation requiring platforms to be more transparent with search results; threatens new rules on ‘fake news’

The European Commission urged web platforms to do more to halt the spread of disinformation on their sites, or face possible regulation. Photo: damien meyer/Agence France-Presse/Getty Images

BRUSSELS—The European Union tightened its effort to rein in tech giants like Alphabet Inc.’s Google and Facebook Inc. on Thursday, advancing several measures that aim to shape the way they operate in Europe.

The European Commission—the bloc’s executive body—proposed new EU-wide regulations that would require web platforms, including search engines like Google, to provide more transparency about their search rankings. The rules also aim to prevent web platforms from offering unfair terms to small businesses that use their services to sell or promote products.

Ahead of European Parliament elections in 2019, the commission also urged platforms to do more to halt the spread of disinformation or “fake news,” on their sites, or face possible regulation.

It asked web platforms to draw up a voluntary code of conduct by July with the aim of seeing changes by October. It said the EU was first pursuing industry self-regulation, but if that fails it would explore other options “including regulatory ones targeted at a few platforms.”

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Some EU countries, including France, are already considering legislation in the area.

Separately, the EU’s three legislative bodies agreed to the final version of new rules that allow countries to force Netflix Inc. and other online-video providers to help finance Europe-made films. On-demand services like Netflix, Inc. and Apple ’s iTunes will also have to ensure that 30% of their content is made in Europe.

The announcements come amid greater scrutiny by lawmakers and other authorities in Europe and the U.S. regarding the power of a handful of large technology companies, including Facebook and Google.

Facebook has come under fire following revelations about the abuse of users’ personal information and interference in the 2016 U.S. presidential election by Russian operatives using the social network.

Under rules proposed Thursday, platforms like Google and Inc. would have to explain how they rank business’ products and services in online marketplaces, for example, or in general search results. They would also have to provide more information about which posts are paid for and which services are offered by the platform itself.

Additionally, tech firms would have to inform companies about their reasons for delisting and removing any goods and services from results.

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Online visibility, including through companies’ positions in search rankings, has a significant impact on sales, particularly for small- and medium-size businesses, the EU says. Some companies, including Google, already publish information about their search rankings.

Tech executives and lobbyists have expressed concern that the EU’s proposal could force companies to divulge too much detail about their search algorithms. This could increase cybersecurity risks and the opportunities for spammers to game the system, degrading the quality of search results.

Some critics of the proposal warn that, amid a backlash against big tech companies, courts could interpret the law more strictly than envisioned or lawmakers could force tougher changes as the proposal advances to the European Parliament and member states, which must agree on a text in order for it to become law.

“I don’t think [the Commission proposal] goes far enough, but it’s a start. We’ll see what the European Parliament can change,” said Andreas Schwab, a German member of the European Parliament who helped draft a 2014 resolution calling for Google’s unbundling.

Mr. Schwab said it was still unclear what more the parliament hoped to achieve, but that forcing companies to open up algorithms about their search results could be a step too far.

Google has already faced pressure in the EU over its search results. Brussels fined it €2.42 billion ($2.9 billion) in 2017 for skewing results to preference its own shopping service over those of rivals and ordered it to treat competitors equally in results. Google is appealing the decision.

Along with potential legal uncertainty, the rules are likely to create more red tape for tech firms as they respond to more complaints. Platforms would have to establish systems to handle complaints and announce any changes to terms and conditions several weeks in advance so businesses have time to adjust.

In terms of combating fake news, the EU said it would support the creation of an independent European network of fact-checkers. The commission wants platforms to improve access to trustworthy information and provide more transparency about content that is sponsored for political purposes. In addition, the EU said it wants firms to restrict targeting options for political ads and facilitate access to news sources representing alternative viewpoints.

Freedom of expression activists urged the EU not to place disproportionate limits on free speech.

“Doing so will not solve the problem of fake news, but make the situation worse,” said Eva Simon, advocacy officer at Liberties, an group promoting civil liberties.

Write to Natalia Drozdiak at
