The European Union is going hard on restricting social media companies Facebook Inc., Google parent company Alphabet Inc. and Twitter Inc. The EU wants social media companies to comply with its rules, or be ready to be fined.
According to a Reuters report, the EU gave the social media companies 30 days to change their terms of service in order to be compliant with EU rules. Failure to do so could lead to millions of dollars in penalties.
In Germany, social media companies were asked to quickly take down derogatory or threatening posts on social media sites. If they cannot do so quickly, the social media companies will have to pay a fine totaling up to $53 million.
Facebook, Twitter, Google+ and other social media companies were also asked to revise their terms of service to allow consumers to sue them in from their home countries where their parent companies are headquartered. In addition, they need to clarify sponsored content more clearly for consumers.
Engadget reported that Facebook, Google and Twitter were also tasked to put an end to online scams and consumer fraud that use their platforms. The social media companies would have to develop a system that will allow them to better identify gimmicks that are out to defraud consumers.
Several scammers use social media sites to get to their target audience. Scams could range from getting payments for fake items, falsely advertising free trials and selling fake products.
Asking the social media companies to change their terms of service is expected to balloon their expenses. On top of that, creating a new system for spotting scams will also cost millions of dollars at least. It is not clear whether the social media companies will comply or challenge the order.
In another tech-related news, Jobs & Hire previously reported that Facebook is preparing to launch its biggest mobile video advertising campaign.