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The tone against the big internet giants like Google, Facebook and Amazon is getting tougher. On Tuesday, the EU Commission introduced the Digital Services Law (DSA) to the Digital Markets Law (DMA), two legislative packages with which international online companies must be comprehensively controlled and regulated. It will be a long time before the bills have been approved by the EU Parliament and national parliaments and implemented. But with a deadline of just three months, EU states have relatively little time to implement the rules.
Responsible for content
In the course of the DSA, the EU intends to take stricter measures against online hate, illegal or false content. This is primarily aimed at social media. Until now, one has been quite limited to one’s own commitments and volunteering. Platforms must set up a reporting system for users that reacts quickly and easily to complaints and removes illegal content. In addition, the algorithms used for the location and classification of posts must be clear to users and explained in an understandable way. Compliance offices are also provided to deal with the implementation of the rules. Furthermore, platforms that are defined as “very large” and therefore have more than 45 million users must disclose certain data for investigation and for authorities. Basically, platforms should be more responsible for the content that appears there.
Increase transparency
The DMA targets the market power of Internet companies and contains a catalog of obligations for especially large providers with an annual turnover of at least 6.5 billion euros in the EU. Restrictions and disclosure and monitoring obligations are intended to promote competition and facilitate market entry, for example for smaller European services. In the future, it should be possible that pre-installed apps can be removed from devices. Additionally, vendors like Apple or Amazon should no longer be able to prioritize their own products in online searches.
Therefore, Amazon could also be forced to better control its product suppliers. The background of this is that buyers are increasingly victims of counterfeit or scam products. Until now, the trading platform has not been responsible. That should change. And with regard to transparency in online advertising, a series of publication and transparency obligations are established, as well as the advertising files that will be made available to users.
By the way, those who do not follow the rules must pay fines of up to six percent of the previous year’s billing. In multinationals like Amazon or Apple, that can reach billions. The EU has been trying for some time to curb the market dominance of large US corporations; but so far rather toothless and on the basis of voluntary commitments.
For smaller European start-ups, it is particularly difficult to take hold due to the many complex sets of rules. On the one hand, large corporations have more financial and personnel options here. On the other hand, in some areas they act outside of national laws because the company’s headquarters are in the US.
There are no plans to separate the major providers, as is currently being discussed on Facebook in the US The Commission did not want to go that far in its draft. 41 US states want to go to court to split Facebook and force it to sell its Instagram photo platform and its mass service Whattsapp.(of the)
