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Premium Labels Ask EU To Crack Down On Big Tech

 |  January 29, 2020

European luxury brands are asking EU regulators to be harder on online tech giants like Amazon and Alibaba regarding fakes and privacy, Reuters reported on Tuesday, January 28.

Andreas Kaufmann, head of the industry group European Cultural and Creative Industries Alliance (ECCIA), along with the chairman of Germany’s Leica Camera AG, said eCommerce giants are ruining the reputations of respected brands.

The timing coincides with a planned revamping of tech regulations by the European Commission.

“The internet at the beginning was free for anyone. It’s not now, it’s driven by market power, it has to be regulated,” Kaufmann told the news outlet.

Premium retail brands in Europe are economic revenue drivers, adding yearly revenue of roughly €800 billion (US$887.5 billion). That figure represents 4% of its gross domestic product. The industry also employs in excess of 2 million people.

The ECCIA is asking regulators to enforce tougher rules on tech companies regarding intellectual property rights and data privacy for the 600-plus brands represented.

“The existing framework doesn’t reflect what is best for our brands. Amazon, for example, gets information that we are not allowed to give to our distributors. Amazon collects and decides,” Kaufmann said.

The alliance is comprised of creative industries in Britain, France, Germany, Italy, and Spain. It wants the European Commission to consider their point of view when creating the digital services act (DSA).

“A well-functioning single market for digital services helps provide new opportunities for many traditional companies (in particular small or new companies),” according to a Commission document seen by Reuters.

Kaufmann added that the EU should also prioritize lowering tariffs in China, the United States, South America and India.

In an effort to gain younger shoppers, luxury labels such as Christian Dior, Louis Vuitton, and Gucci are putting money into social media, especially Instagram. Following the lead of smaller brands, bigger retail brands have been increasing their social media budgets and developing high-profile events and experiences.

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