The new rules for a safer and more open internet in the EU’s digital rulebook
The new EU digital rulebook sets very high standards of accountability for internet companies, in the context of an open and competitive digital market.
In the final vote held on Tuesday, the European Parliament approved the Digital Services Act and the Digital Markets Act. This approval was made possible following the agreements reached by the Parliament and the Council on the two pieces of legislation, on 23 April for the first and on 24 March for the second. The aim of the new legislation is to address the impact of the technology industry on society and the economy by setting clear standards for how technology companies operate and provide services in the EU, in line with fundamental rights and European values.
The law on digital services was approved with 539 votes in favor, 54 votes against and 30 abstentions. The law on digital markets was approved with 588 votes in favor, 11 against and 31 abstentions.
What is illegal offline should be illegal online
The Digital Services Act clearly defines the obligations of digital service providers, such as social media and online commerce platforms, to combat the spread of illegal content, online misinformation and other social risks. These obligations are proportional to the size of the platforms and the risks they pose to society.
The new obligations include
New measures to deal with illegal content on the internet and obligations for platforms to react quickly, while respecting fundamental rights, including freedom of expression and protection of personal data.
Strengthening traceability and checks on merchants in online markets to ensure that products and services are safe, by also conducting random checks for the re-emergence of previously removed illegal content.
Increasing the transparency and accountability of platforms, for example by providing clear information about content control and the use of algorithms based on which content is recommended to users (so-called recommendation systems), while users will be able to appeal against decisions in the context of content control.
A ban on deceptive practices and certain types of targeted advertising, such as those aimed at children or based on sensitive data, while dark patterns and deceptive practices will also be banned.
Very large online platforms and search engines (with over 45 million visitors per month), which also pose the greatest risk, will have to comply with stricter obligations, which will be imposed by the European Commission. These obligations will include preventing systemic risks (such as the dissemination of illegal content, adverse effects on fundamental rights, electoral processes and gender-based violence or mental health) and submitting to independent audits. These platforms should also provide users with the option not to see recommended content based on their profile, and should also facilitate access to their data and algorithms by authorities and accredited researchers.
Dos and Don’ts for Internet Keyloggers
The Digital Markets Act sets out the obligations of major online platforms that act as regulators of access to the digital market. This term is used for platforms that have a dominant position on the internet, which makes it difficult for consumers to avoid them. Thanks to the arrangements of the new legislation, more services for consumers and a fairer business environment will be ensured.
In order to prevent phenomena of unfair business practices, platforms that are considered access regulators should:
Ensure interoperability of third-party platforms with their own services, i.e. smaller platforms will be able to ask their dominant competitors to allow their users to exchange text and voice messages and send files from one application to another, thereby giving them more options and avoiding locking them into one application or platform.
To allow business users to access the data they generate on the platform, to promote their own offers and to enter into contracts with their customers outside the specific platform.
Access controllers will no longer be able to:
To rank their own services or products more favorably on their platforms (self-favoring practices), undermining other companies.
Make it difficult to uninstall pre-installed software or applications from their device or prevent the use of third-party applications or app stores.
To process personal data for targeted advertising, unless express consent is provided.
Penalties
The European Commission can carry out market surveys to ensure that the new rules on digital markets are implemented correctly and keep pace with the ever-changing digital environment. If an access regulator does not comply with the rules, the Commission will be able to impose fines of up to 10% of the platform’s total global turnover in the previous financial year, or up to 20% for repeated non-compliance.
Statements
Christel Schaldemose (Socialists, Denmark), rapporteur for the Digital Services Act, said: “Several tech giants have taken advantage of the absence of rules. The digital world has become a wild west where the biggest and most powerful make the rules. But there’s a new sheriff in town – the Digital Services Act. Now the rules and rights are strengthened. We’re opening the black box of algorithms to finally learn how the money-making machines of digital platforms work.”
Andreas Schwab (EPP, Germany), rapporteur of the Digital Markets Act, said “We no longer accept the law of the economic jungle. The raison d’être of the digital commons is for Europe to have the best companies, not just the biggest. That is why we need to focus on implementing legislation. We need proper oversight to make sure the regulatory dialogue is working. Only once a mechanism for dialogue on equal terms is in place will we be able to enjoy the respect the EU deserves – and we owe it to our citizens and businesses.”
Next steps
Once officially approved by the Council (in July the Law on Services, in September the Law on Markets), the two laws will be published in the Official Journal of the EU and enter into force twenty days after their publication.
The Digital Services Act will apply immediately across the EU. It will start to apply fifteen months after it comes into force or on 1 January 2024, whichever is later. As for the obligations for very large online platforms and search engines, the Digital Services Act will start to apply earlier, namely four months after the European Commission determines which companies are considered “very large”.
The Digital Markets Act will take effect six months after it comes into effect. Platforms designated as access regulators will have a maximum of six months from the time of designation to comply with the new obligations.
Elena Papadimitriou
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