The European Parliament approves major technology anti-trust laws
The European Commission announced late yesterday that the Digital Markets Act (DMA) and Digital Services Act (DSA) by voting, marking a new chapter on how technology companies will be able to operate in the EU. The IS parliament vote 588 in favor and 11 against the DMA, while 539 MEPs supported the DSA, with 54 votes against.
What are the DMA and DSA regulations?
The DMA enables a range of anti-trust action and also addresses interoperability issues. These include the right to uninstall software on devices, better access controls on personal data, enhanced advertising transparency, elimination of vendors choosing their own services, and lifting certain app store restriction requirements for developers.
In the meantime, the DSA sets out new rules on how internet companies should keep European users safe from online misrepresentation and illegal content, goods and services. The legislation will prohibit the practice of targeting online users based on their religion, gender or sexual preferences, so-called dark patterns to lure users, and deceptive web design aimed at encouraging people to deliberately click on online content.
Both regulations are expected to take effect early next year following the completion of the formal adoption process.
According to the Commission, the sanctions will be gradual but unprecedented in its scope. For companies found to be in breach of the DSA, fines account for up to 6% of global turnover. However, in the event of serious and repeated infringements, the legislation will allow national courts to prohibit companies from operating on European territory. Under the DMA, sanctions will be set at 10% of global turnover, or up to 20% for repeat offenders.
A new era for regulation
Pinar Akman, a law professor specializing in competition law and director of the Jean Monnet Center of Excellence for Digital Governance at the University of Leeds, said the adoption of the DMA and DSA marked the beginning of a new era in digital regulation. markets, in particular the DMA, which focus on the competitiveness and equity of digital markets.
She warned, however, that much of what the legislation can achieve will depend on how it can be applied and enforced in practice.
“There are many issues with the text of the DMA, and we may see litigation on these, which may mean that we do not see the rapid changes required in digital markets,” Akman said.
I recent paper she highlighted some uncertainties regarding the substantive provisions of the DMA, noting that, although the rules are thought to be self-enforcing, many of the obligations under Article 5 may not actually be self-enforcing in the light of what in them.
“As for the technology companies, the larger platforms will already be making a concerted effort to bring their operations in line with the DMA and the DSA to the extent that they can do so without further guidance from the Commission. rules. automatically applicable when they enter into force. “
Copyright © 2022 IDG Communications, Inc.
The European Parliament approves major technology anti-trust laws
Source link The European Parliament approves major technology anti-trust laws
