The EU has taken the first step in approving two new rules to regulate online space

The constant effort to control big players and get online content into common European rules has resulted in the approval of new regulations. So is we finally waiting for joint action against Big Tech and protection in the online space?

DMA a DSA

Two new abbreviations, which we will probably get used to as well as GDPR. EU rules on Digital Markets Act (DMA) and Digital Services Act (DSA) are two news from Brussels. According to the DMA, the aim is for large digital companies to grow and improve, but not at the expense of consumers and the European economy. Today, it is clear that the competition rules themselves they cannot solve all the problems we face with technology giants and their ability to set rules by engaging in unfair commercial practices. That is why the Digital Markets Act (DMA) is intended to regulate this area and is aimed at the services referred to as ‘base platform services’, which are most prone to unfair practices. These include online brokerage services, social networking, search engines, operating systems, online advertising services, cloud computing and video sharing services.

The DMA will cover companies providing a “core platform service” in at least three EU countries and reach at least 45 million end users per month, as well as more than 10,000 corporate customers. These businesses will have several restrictions, they will not be able to impose unfair conditions on customers, their targeted advertising will only be able to use the necessary data and third-party advertising, which is permitted by many social media, micro-targeting will not be possible (unless the customer expressly agrees). The new rules also do not forget to protect children, parental controls should become the standard and its real verification. If the rules are violated, a fine of 4% to 20% of the company’s total worldwide turnover will be imposed. Final approval is expected in the middle of next year.

DSA focuses mainly on online intermediaries, such as online marketplaces, application shops or even online accommodation platforms. In particular, the DSA will aim to set rules for these shopping areas and thus prevent discriminatory conditions. There are known cases of Booking.com, which have provoked criticism from Brussels. For example, the DSA obliges large intermediaries in online marketplaces to check and verify who is actually the seller of the goods. In the case of fraud, for example, the buyer should have better space to get the money back directly to the intermediary who operates the platform. The introduction of DSA is not expected until 2024.

EU rules sometimes lack their uncertainty, or rather the setting of rules by leaving their detail to the service provider. So only the new rules of conditions and their real application by social giants and the remaining market players will show how effective these two new tools will really be.