The EC is seeking views on the topics that will be part of the DSA proposal, including ex-ante remedies. A new competition tool is also being proposed.
Background: The European Commission set out its intention to propose a Digital Services Act (DSA) in the political guidelines it published at the start of its mandate in December 2019. The purpose of the DSA is to strengthen liability rules for digital platforms on issues such as hate speech, disinformation, and political advertising, as well as to address the dominance of large online platforms which act as gatekeepers in digital markets. A full proposal is scheduled for Q4 2020. The EC aimed to launch a public consultation on the DSA by March 2020, however this was delayed due to the COVID-19 pandemic.
Ex-ante regulation could be in the cards: On 2 June 2020, the EC launched its consultation on the DSA. In line with the proposed scope of the Act, the consultation covers issues such as safety online, freedom of expression, fairness and a level-playing field in the digital economy. With regard to competition, the most noteworthy aspect of the consultation relates to possible ex-ante regulatory remedies for digital platforms. Some of these may be general rules for platforms of a certain scale (e.g. rules on self-preferencing), whereas others may be imposed on specific companies and include non-personal data access obligations, specific requirements regarding personal data portability, or interoperability requirements.
A new competition tool is also proposed: In parallel with the DSA consultation, the EC is seeking views on a possible new competition tool, reflecting the changing role of competition policy in view of the growing importance of digital services. This tool, alongside the above mentioned measures, would help ensure the contestability and fair functioning of markets. In its initial impact assessment, the EC has identified four options for the scope of the tool, which could be either dominance-based (i.e. related to the conduct of one company) or market structure-based, and have either a horizontal scope (i.e. across all markets) or a limited scope (related to specific markets). Both consultations are open until 8 September 2020.
