EU members approve regulation of digital giants

The 27 member countries of the European Union (EU) adopted this Thursday (25) a joint pressure, by approving in general terms a bill from the bloc to regulate the internet and put an end to the abuses of power by the digital giants.

Large-scale hate speech, manipulation of information, breaking up small local businesses. To put an end to the internet’s ‘anything goes’, the European Commission had proposed in December 2020 regulatory projects.

The French Secretary of State for the Digital Sector, Cédric O, celebrated the agreement reached in less than a year by the member states. “Such a quick deal is exceptional,” he commented. These texts are “perhaps the most important in the history of digital regulation”, he added.

One of them (the “Digital Services Act”, DSA) aims to combat fraud and illegal content. An example: it will impose that the biggest platforms have the means to moderate the contents they host.

The other is linked to markets (the “Digital Markets Act”, DMA) and its purpose is to repress the anti-competitive practices of large technology groups such as those of “GAFAM” (Google, Apple, Facebook, Amazon and Microsoft).

This text constitutes an absolute change of mindset. After years of looking in vain in endless trials to penalize these large multinationals, Brussels wants to impose a series of obligations and prohibitions on them.

The approval by member states of the current version of the two laws, which includes some changes compared to the initial proposal, paves the way for starting negotiations on the definitive texts with the European Parliament (tripartite dialogue).

The latter has yet to define its position. On Tuesday, MEPs reached an agreement within the scope of their Internal Market Commission (IMCO) regarding the DMA, and its text would be presented in December to the plenary of the Assembly. On the contrary, discussions are more complex regarding the DSA and some fear delays that could decouple the timing of the two regulations.

‘Brutal approach’

France, which will hold the EU’s rotating presidency for six months starting in January, hopes to be able to finalize the two laws before summer in the northern hemisphere. The goal is for them to take effect from January 1, 2023.

“The two texts are closely linked, they are two sides of the same coin, one (DMA) focuses on economic aspects, and the other (DSA), on social ones,” said Thierry Breton, Internal Market Commissioner on Thursday .

“We will start tripartite dialogues on DMA in early January and there is an urgent need for them to start on the DSA as soon as possible,” he said.

Earlier this month, this legislative process had the support of Frances Haugen, the former employee who made revelations about the backstage of Facebook. But the digital giants try to protect their interests.

The big tech lobby, the Computer and Communications Industry Association (CCIA), which had previously been critical of MEPs’ amendments to the DMA, again warned on Thursday of the risks that, in its opinion, represent too restrictive rules. “DMA must be adapted to avoid the undesirable consequences of a brutal approach,” he argued.

In the DMA, under pressure from Germany, the 27 reinforce the role of national competition authorities, which could open investigations into possible infringements committed in their territories.

Regarding the DSA, they give the European Commission the power to act against digital platforms in the event of serious infringements, which until now was an attribution of the country that houses its European headquarters.

Ireland, which has several headquarters for these groups, has often been criticized for its tolerance of them for the benefit of its own economy.