Stakeholders: EU Governments' Position on Proposed Digital Rules Need Tweaking

EU governments' negotiating position on new digital rules won favorable reviews from stakeholders, with some caveats. European Council ministers approved a "general approach" Thursday on the European Commission-proposed Digital Services Act (DSA) and Digital Markets Act (DMA) (see 2012150022). The DSA aims to protect users from illegal goods, services or content by, among other things, setting due diligence requirements for online intermediaries. The DMA seeks to create a level playing field in the digital sector by regulating "gatekeepers" that control core platform services to the detriment of competition. Changes include making the DSA explicitly applicable to online search engines and adding stricter rules for very large platforms, the Council said. Agreed amendments to the DMA include setting better criteria for designating gatekeepers and confirming the EC, not member countries, as sole enforcer of the regulation. The position is a "mixed bag" for consumers, said the European Consumer Organization: While the measures are good for consumers, they don't go far enough. The Consumer & Communications Industry Association welcomed the Council stance but said the DMA should be "better tailored to prevent the unintended consequences of a blunt, one-size-fits-all approach." The approach taken by the EC and Council recognizes the major changes in the digital ecosystem since the eCommerce Directive was adopted in 2000," said the European Telecommunications Network Operators Association and the GSM Association. However, they added, as the European Parliament continues its discussions of the proposals, it should more fairly allocate responsibility to different internet intermediaries according to their role in the digital value chain and their technical capabilities to act against illegal material in a targeted manner to avoid breaching fundamental rights. Parliamentary committees are still vetting the EC proposals. Talks between governments and lawmakers are scheduled next year.