Internet Platform Rules Advance in European Parliament

Regulations intended to rein in large internet platforms moved forward Tuesday as EU lawmakers debated the Digital Markets Act (DMA) and a key committee approved its report on the Digital Services Act (DSA). The measures appear to be generally popular, but some lawmakers and stakeholders said they don't go far enough. 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. The DSA aims to protect users from illegal goods, services or content by, among other things, imposing due diligence requirements on online intermediaries (see 2012150022). Amendments to the report were to be voted Tuesday, with a final vote scheduled Wednesday. That will set parliament's negotiating position for talks with governments in the council, who agreed on their approach in November (see 2111260016). The DMA would put Europe in the leadership of the digital space, said Internal Market Commissioner Thierry Breton. He noted criticism from across the Atlantic but said the DMA isn't against any country or company, but rather an effort to regulate that space. Lawmakers generally supported the DMA subject to several changes, including ensuring that social media platforms and messaging services are interoperable, that they're safe and protective of personal data, and banning personalized kids advertising. Some members worried that the parliamentary version weakens the EC proposal by, for example, reducing companies that will fall within its scope. The lead committee vetting the DSA, the Internal Market and Consumer Protection Committee, OK'd its report. The approach taken by IMCO rapporteur Christel Schaldemose, of the Party of Socialists and Democrats and Denmark, got backing from other committees that reviewed the proposal, she told a Tuesday briefing. Compromises included: It safeguards intermediary liability provisions in the EU e-commerce directive, and opens the "black box of algorithms," forcing large platforms to disclose such things as content that may breach their terms. Members of European Parliament introduced a right for consumers and businesses to seek compensation for DSA violations. Asked which changes might be controversial in talks with governments, Schaldemose said that the council wants to finish work quickly could be problematic. Targeted ads and the black box of algorithms might be tricky, she said. The European Consumer Organisation urged MEPs to "aim for a stronger liability regime for marketplaces when consumers are harmed, a ban on surveillance advertising altogether, and for all platforms to have to verify the legality of sellers and their products, not just the large ones." "Further work is needed on marketplace obligations, user redress, and data disclosure to law enforcement and researchers," emailed the Computer & Communications Industry Association. Parliament votes on the amended DSA proposal in January.