EU adopts ground-breaking rules

EU adopts ground-breaking rules

The Digital Markets Act (DMA) and the Digital Services Act (DSA), two significant pieces of digital consumer protection legislation, were officially adopted by the European Union (EU)

The packages, which were first put forth in December 2020 includes prohibitions on child-targeted advertising, dark trends (apps that trick users into disclosing personal information), businesses that favour their own services and businesses that prevent users from downloading alternative software. Additionally, the legislation aims to foster competitiveness.

The law also makes it possible for authorities to access so-called "black-box" algorithms. This helps in obliging businesses to divulge their algorithms for enforcement purposes.

Consumer groups have generally applauded the decision, but some have expressed worries about enforcement. Prior to the vote, the European Consumer Organization and other consumer advocacy organisations published a statement in which they called for adequate funds and staffing to implement the regulations. The letter declares:

Big IT corporations would be hesitant to take their responsibilities seriously to comply if the Commission lacked the resources and internal knowledge to ensure submission. This would have a negative impact on the regulations' effectiveness. It will in return jeopardise their ability to accomplish the goals. In such a situation, the legislation would quickly lose favour among the people of Europe. Additionally, inadequate enforcement would damage the reputation the EU has built for itself as the first region in the world to address the excessive dominance of Big Tech.

In response to these worries, Commissioner Thierry Breton published a blog post outlining the precise steps the EU will take to address staffing and financial issues. Breton claims that there will be a fee payment for online firms (such as Google, Amazon, Twitter, Facebook, etc.) must pay a required levy that will pay for enforcement. If the regulations are broken, there will also be heavy fines that go towards ongoing enforcement. Breton also unveiled a comprehensive 24-month plan to increase recruiting, with a focus on specialists in the field. Breton assured doubters by stating:

The data science and algorithmic expertise that will be attracted to this new centre will complement and help the enforcement teams. Together with DG Competition, the Commission Legal Service, the JRC, and enforcement agencies in Member States, the new DG CONNECT teams responsible for the DSA/DMA implementation will create a potent new digital regulator with technology built into its very DNA.