News feature | 05-07-2022 | 14:10
Businesses and consumers using the world’s largest digital platforms will take full advantage of the new Digital Markets Act (DMA). The European Parliament voted in favor of this law today, for which the Netherlands is one of the drivers. The DMA will enter into force from 2023. Also it Act on digital services (DSA) got the green light today and will enter into force in 2024. In addition, by the end of 2023 Data Management Act (DGA) in operation.
Minister Micky Adriaansen (Economic Affairs and Climate): “We can now seriously start renewing the European digital market. In this way, we provide entrepreneurs of all sizes with growth opportunities, we promote fair competition and consumers are better protected. DMA and DSA bring digital opportunities closer to everyone. We will continue to stimulate innovation, we will soon be less dependent on large platforms through increased market access, and we will fight illegal content, cybercrime and misleading consumers and entrepreneurs. ”
DMA: Competition rules and supervision of largest digital platforms
DMA protects consumers and entrepreneurs and ensures more competition and convenience in digital markets. For example, you will soon be able to send individual messages from one messaging service to another. Also, app developers may no longer be forced to use the payment system in an app store, and their own products or services from certain platforms may no longer be placed at the top of search results.
DMA will introduce additional market and merger oversight and competition rules for the fifteen to twenty largest online platforms worldwide with a so-called gatekeeper position that users can hardly ignore. This group of online platforms must also comply with various prohibitions and obligations associated with large fines. Examples include a ban on favoring own services and products, the ability to transfer data from one platform to another, and the ability to remove pre-installed apps. There will also be a notification obligation to assess mergers and acquisitions.
A platform falls under the DMA as a gatekeeper if it provides the same core platform service in at least three EU Member States and has achieved an annual turnover of 7.5 billion. In the EU over the last three years, or if it has a market value of at least € 75 billion in the last year. In addition, such a platform must have at least 45 million active end-users and at least 10,000 business users based in the EU for three years.
DSA new basis for digital services
DSA consists of rules of responsibility and liability for ISPs, hosting companies, online platforms, search engines and marketplaces for the activities through their services.
For example, from the beginning of 2024, online marketplaces will need to obtain more information about the companies (merchants) that sell products or services through their platform. DSA will also soon oblige hosting and platform service providers to combat illegal online content and inform users more extensively about this. Digital providers should therefore better explain the removal of information or user accounts. In addition, the DSA also provides the opportunity to better protect citizens from misinformation and fake news and better protection of fundamental and human rights.
The DSA further prohibits online platforms from personalizing ads based on, for example, religion or sexual orientation. In the future, minors will also be extra protected from personal ads. This should help ensure that they do not see inappropriate advertisements.
DGA: regulation of data sharing markets
DGA is about – relatively new – marketplaces that facilitate the sharing of data between parties, whereby the service provider makes an active effort to establish a connection between data sharing and the recipient. It is expected that more companies and organizations will emerge that want to relieve companies in the data chain and unlock the value of data through them.
From the end of 2023, these new data sharing markets will be regulated up front via the DGA. For example, through rules on the neutrality of a data intermediary service. It fits in well with the Dutch vision of data sharing between companies, where we see that there is a huge future potential in data sharing, but that trust is an important bottleneck. Under DGA can also personal data controllers organizing permission to access data on behalf of a person.