EU Lawmakers OK New Rules for Platforms

New rules for internet platforms cleared the European Parliament Tuesday, with lawmakers overwhelmingly approving the Digital Services Act (DSA) and Digital Markets Act (DMA). Under the DSA, digital services providers such as social media or marketplaces will have to act to prevent the spread of illegal content, disinformation and other risks, Parliament said. These include new requirements to react quickly to illegal content, stronger checks on online traders to ensure services and products are safe, requiring platforms to be more transparent about their algorithms for recommending content and bans on practices such as advertisements that target children or use sensitive data. Platforms and search engines with 45 million users or more monthly will be subject to stricter rules, including making their algorithms accessible by authorities and vetted researchers. Under the DMA, very large platforms acting as "gatekeepers" will have to allow third parties to interoperate with their services and let business users access the data they generate, Parliament said. They won't be allowed to rank their own offerings more favorably or process users' personal data for targeted advertising without express consent. Noncompliance could result in fines of up to 10% of a company's total worldwide revenue in the preceding fiscal year or up to 20% in cases of repeated failure to comply. The measures need formal approval from EU governments, expected this month and in September. "The European Parliament has adopted a global first: Strong ambitious regulation of online platforms," said European Commission Vice President Margrethe Vestager. The DSA and DMA are "turning the page on 'too big to care' platforms," said Internal Market Commissioner Thierry Breton. The European Telecommunications Network Operators Association and GSM Association praised EU efforts to balance preventing the spread of illegal content online while respecting fundamental rights "by recognising that intermediaries should bear responsibilities proportionate to their role in disseminating such material." Consumers and digital rights groups warned the laws must be closely monitored. The DMA is a "gamechanger" for users but the EC must allocate the necessary resources to enforce it, emailed European Consumer Organization Deputy Director General Ursula Pachl. The DSA "is only a first step in ensuring people's rights online are protected," said European Digital Rights.