Tech Legislation Update: EU's Digital Services Act and Digital Markets Act and Their Implications on Tech Giants
The European Union took a significant step forward in October 2023 with the release of two landmark regulations: the Digital Markets Act (DMA) and the Digital Services Act (DSA). These regulations, designed to create a safer and more competitive digital environment, mark a new era in internet governance within the EU.
The Digital Services Act (DSA) primarily focuses on user protection, content moderation, and transparency, aiming to make the internet a safer place for all. It applies to all digital services interacting with users, including very large online platforms (VLOPs), search engines, online content sharing service providers, online advertisers, online marketplaces, regulatory authorities, consumers, and users.
The DSA introduces obligations for online platforms regarding illegal content, harmful activity, disinformation, and transparency. It aims to address the EU's concerns regarding the growing influence of online platforms in political discussions, disinformation campaigns, fake news dissemination in the lead-up to elections, and the societal impact of hate speech.
On the other hand, the Digital Markets Act (DMA) regulates how large digital platforms compete and behave in the market. It primarily applies to gatekeepers, such as Google and Apple, who hold a significant position in the digital market. The DMA aims to foster competition and ensure that gatekeepers do not engage in anti-competitive practices that hinder innovation.
The DMA grants the European Commission additional powers to conduct investigations and intervene in digital markets, and establishes a system of ex-ante regulation with enhanced oversight and remedies. It defines gatekeepers as large digital platforms providing core platform services and prohibits practices such as self-preferencing, leveraging data, and blocking third-party access.
Together, the DSA and DMA form the Digital Services Package, a coordinated EU regulatory framework designed to make digital environments both safer for users (via the DSA) and more competitive (via the DMA). The package is expected to create a fair and competitive digital environment, addressing concerns about the market power and behavior of large digital platforms.
The DSA will become fully applicable to all entities beginning from 17 February 2024, and EU member states will be responsible for enforcing the provisions within their jurisdictions. With these regulations in place, the EU is taking a proactive step towards creating a digital space that is both safe and fair for all its citizens and businesses.
[1] European Commission. (2023). Digital Services Act. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12523-Digital-Services-Act-DSA
[2] European Commission. (2023). Digital Markets Act. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12437-Digital-Markets-Act-DMA
[3] European Commission. (2023). Digital Services Package. Retrieved from https://ec.europa.eu/info/strategy/priorities-digital-era/digital-services-package_en
The Digital Services Act (DSA) and the Digital Markets Act (DMA) are integral components of the Digital Services Package, a comprehensive EU regulatory framework aimed at ensuring a safe and competitive digital environment. The DSA focuses on user protection, content moderation, and transparency, while the DMA regulates competition among large digital platforms and prohibits anti-competitive practices such as self-preferencing and leveraging data.
