EU vs Big Tech: Digital Acts approved

Author Moonshot.news

Published on: 23/04/2022

Rules on how to limit the power and dominance of the world’s big tech companies will soon come into force in the European Union. The European Parliament and the European Council have now agreed on how to implement both the Digital Services Act (DSA) and the Digital Markets Act (DMA). The new rules system are meant to increase online competition and put pressure on big tech to be more active in fighting disinformation and harmful content.

“With the DSA, the time of big online platforms behaving like they are “too big to care” is coming to an end, Commissioner for the Internal Market, Thierry Breton, said when the Parliament and the Council had agreed on the DSA.

“The DSA is setting clear, harmonised obligations for platforms – proportionate to size, impact and risk. It entrusts the Commission with supervising very large platforms, including the possibility to impose effective and dissuasive sanctions of up to 6% of global turnover or even a ban on operating in the EU single market in case of repeated serious breaches.”

The new rules will apply in all EU countries and are expected to be implemented in steps with the last deadline in January 2024. However, rules regarding the very large online platforms and very large online search engines are expected to be valid from this autumn.

The big tech companies have forcefully argued against some of the legislation as the Acts open up for more competition. Formally the companies have of course agreed that citizens should be protected against misuse of power. Despite this, they have, in various ways, attacked parts of the Acts that are meant to do precisely that: protect users from big tech misusing their market dominance.

The effects of the Acts will not only be watched by EU countries but by governments and lawmakers all over the world.  The two Acts could have a global impact on the discussion on how countries and lawmakers can control big tech.

DIGITAL SERVICES ACT, a short summary

• Aims to create a safer online space for users, stricter rules for platforms
• The DSA establishes a “notice and action” mechanism, as well as safeguards, for the removal of illegal content.
• Online platforms must be transparent about how algorithms work and platforms should be accountable for decisions they make.
• Measures to counter illegal products, services and content online, including clearly defined procedures for removals
• Mandatory risk assessments and more transparency over “recommender systems” to fight harmful content and disinformation
• Online platforms should be prohibited from using deceiving or nudging techniques to influence users’ behaviour through “dark patterns”
• Targeted advertising: the text provides for more transparent and informed choice for all recipients of services, including information on how their data will be monetised and to better protect minors from direct marketing, profiling and behaviourally targeted advertising for commercial purposes

DIGITAL MARKETS ACT, a short summary

• The Digital Markets Act(DMA) proposal blacklists certain practices used by large platforms acting as “gatekeepers” and enables the EU Commission to carry out market investigations and sanction non-compliant behaviours.
• The purpose of the Digital Markets Act is to ensure a level playing field for all digital companies, regardless of their size. The regulation aims to lay down clear rules for big platforms – a list of “dos” and “don’ts” – to stop them from imposing unfair conditions on businesses and consumers.
• Putting an end to unfair business practices by big online platforms
• Restrictions on “killer acquisitions”
• Gives users the option to uninstall pre-installed software applications, such as apps, on a core platform service at any stage
• Whistleblowers should be able to alert competent authorities to actual or potential infringements. They should be protect them from retaliation
• The Commission can impose fines of “not less than 4% and not exceeding 20%” of its total worldwide turnover in the preceding financial year.

The Commission’s president, Ursula von der Leyen, said the agreement on how to implement the Digital Services Act is complementing the political agreement on the Digital Markets Act last month and sends a strong signal: to all Europeans, to all EU businesses, and to our international counterparts.

“The greater the size, the greater the responsibilities of online platforms.”