The European Commission publishes the long-awaited Digital Services Act alongside the Digital Markets Act.
The new rules are finally unveiled: As part of its Digital Strategy, in February 2020 the European Commission announced new rules to curb the power of Big Tech. On 15 December 2020, the EC unveiled the Digital Services Act (DSA) and the Digital Markets Act (DMA). The EU Parliament and Council will now discuss the proposals, but agreeing on a common text could take years.
What is the DSA? The DSA includes rules for removal of illegal content, transparency measures on advertising and algorithms, and new powers to scrutinise how platforms work. Platforms reaching more than 10% of the EU population are ‘systemic’ by default, and are subject to specific obligations and to a new oversight structure. The EC will have powers to sanction large platforms directly.
The DMA introduces ex-ante regulation: The DMA will apply to companies designated as ‘gatekeepers’. These will be prevented from behaving unfairly (e.g. ensuring users cannot uninstall pre-installed apps), and will be subject to measures to ensure interoperability. Sanctions for non-compliance could include divesting parts of a business, and fines as high as 10% of worldwide turnover.
