The Digital Markets Act and The Digital Services Act Pave The Way For a More Equitable and Competitive Digital Economy
The EU’s reaction to the need for digital space regulation is the digital services package. It outlines safeguards for online consumers while encouraging innovation.
The digital market and economy in the EU are significantly influenced by online platforms. EU members acknowledge that the regulations governing digital services need to be strengthened, modernized, and clarified to:
- Ensuring online user security
- Enabling the expansion of creative digital companies
The European Commission unveiled the Digital Services Act package in December 2020. It contains:
- the Digital Services Act
- the Digital Markets Act
What is the Digital Services Act?
The Digital Services Act (DSA) aims to defend fundamental rights in the digital sphere and to make the internet a safer place for businesses and consumers by introducing new regulations on:
- Addressing societal dangers
- Dealers’ ability to be tracked online using internet marketplaces
- For internet platforms, transparency measures
- Increased oversight
Benefits of DSA
The Digital Services Act will protect the rights and legitimate interests of all parties involved, the majority of whom are EU residents.
Online users in the EU will have more control over what they see online, including the ability to understand or be informed about the advertisements they view. Users will be able to report illegal content, and the platform will be required to notify them of any decisions made.
The law would make the regulations for online content management more transparent, while also increasing data availability for authorities and researchers to better understand the online realm, its societal impact, and potential threats.
What is the Digital Markets Act?
The Digital Markets Act (DMA) aims to create an equal playing field for all digital businesses, regardless of size and was signed on 14 September 2022 by Presidents of the European Parliament and EU council. The Digital Markets Act aspires to ensure a competitive and equitable digital industry by putting specific rights and requirements on huge online platforms fostering creativity and a fairer online platform environment for technological start-ups.
Which platforms are seen as gatekeepers?
A platform must have either an annual turnover of at least €7.5 billion within the European Union (EU) in the previous three years or a market valuation of at least €75 billion to be considered a gatekeeper and it must also have at least 45 million monthly end users and at least 10,000 business users established in the EU.
In addition, the platform must handle one or more essential platform services in at least three member countries.
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