The Digital Services Act and Digital Markets Act are building a safer and fairer online environment for citizens and businesses.
The digital space should be a safe place for you, where your fundamental rights are protected, and businesses have a level playing field. The Digital Services Act and the Digital Markets Act protect your fundamental rights online, safeguarding your privacy and your freedom of choice in the digital world.
The Digital Services Act and the Digital Markets Act ensure a safer and fairer internet for you. With these rules all businesses in the EU face a fair and open economy with higher transparency of digital platforms.
The Digital Services Act (DSA)
The Digital Services Act is a set of rules to make online platforms safer and more trustworthy for users. It is applicable to all online intermediaries, which connect their users with other people, with information or with products. And, it applies in a proportionate way: the bigger the intermediary, the more stringent their obligations.
All the platforms are responsible for ensuring that their services follow the DSA rules on:
Illegal content
- Users must be able to easily report illegal content spotted online
- Online platforms must cooperate with authorities in case of any criminal offences on their platforms (e.g. child abuse material)
- Trusted flaggers will help to detect certain types of illegal content online, such as hate speech or terrorist content
Ads
- Targeting minors with advertising based on the profiling of their personal data is prohibited
- The DSA prohibits targeting minors with advertising based on the profiling of their personal data, and targeted ads for anyone based on the profiling of sensitive data, such as religious beliefs or sexual preferences
- Users must have information on ads they see: why they are seeing the ads and on whose behalf it is shown
Freedom of expression
- Online platforms have to provide users with the reasons why their content or accounts were removed
- Users must be able to challenge content moderation decisions by complaining to the platform, through an out-of-court dispute mechanism or to an authority in their EU country
Manipulative tactics
- Dark patterns, or manipulative tactics that can impair users’ decision-making online are now prohibited
Content recommender systems
- Platforms must provide clear terms & conditions, and if their service is directed towards minors, their terms and conditions must be easily understandable to this age group.
- The terms and conditions must also explain the main parameters of platforms’ recommender systems
- Platforms must have points of contact for authorities
Very large online platforms and search engines
Very large online platforms and search engines are defined as online intermediaries with more than 45 million monthly users in the EU. You might have seen them called VLOPs or VLOSEs.
The Commission decides who is a VLOP or VLOSE based on user numbers provided by the platforms.
Since they are so big, these platforms have built an important role in our societies. But with this role comes responsibilities.
This is why the Digital Services Act sets out strict rules for VLOPs and VLOSEs.
Among other things, they must:
- Identify and address any systemic risks their platforms pose. Systemic risks are considered those that effect our society as a whole, such as those related to fundamental rights, illegal content, public security and elections, gender-based violence, public health, protection of minors and mental and physical well-being.
- Publish 6-monthly transparency reports, containing information on their content moderation decisions and yearly audits
- Establish a point of contact for users and authorities
- Report criminal offences
- Make available a library of ads shown on their platform
- Give vetted researchers access to data on systemic risks
Supervising and enforcing the rules
The enforcement of those rules sees the Commission and EU member states joining forces. The Commission is responsible for supervising platforms that have been named as VLOPs or VLOSEs.
Digital Services Coordinators, appointed by Member States, are responsible for overseeing that all other online platforms based in their country are respecting the DSA. They will cooperate and exchange information in the Board of the Digital Services Coordinators
The Digital Markets Act (DMA)
The Digital Markets Act applies only to so-called 'gatekeepers', with a list of ‘dos’ and ‘don’ts’.
Gatekeepers are large online platforms that provide core services and act as an important gateway between businesses and consumers – think of search engines, app stores and messenger services.
The Commission names platforms as gatekeepers if they:
- Have a certain annual turnover in the European Economic Area and provide a core platform service in at least 3 Member States
- Provide a core platform service to more than 45 million active monthly users in the EU and to more than 10,000 active business users per year
- Meet the second criteria during the last three years
The Digital Markets Act aims to make digital markets fairer and more contestable by creating:
A fair business environment for companies
Businesses using large digital platforms should have a level playing field and not have to compete with unfair advantages often enjoyed by gatekeepers.
Opportunities for Start-Ups
Start-ups using large digital platforms can compete more effectively without being subjected to gatekeepers’ restrictive or unfair practices.
Increased Consumer Choices
Users enjoy a broader selection of innovative digital services.
Empowered consumers
Users regain control over their activities online and how their data is processed and used.
What does the DMA change?
More opportunities to grow and innovate for businesses
Freedom to set prices and choose channels of offer
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Businesses can set their own pricing strategy on and off gatekeepers’ platforms, without facing price restrictions
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Detailed ad pricing information for advertisers and publishers to better understand costs and avoid hidden fees when placing ads
Free choice of services
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Gatekeepers cannot require businesses to use their additional services like payment systems or browsers. Businesses are free to choose alternative services, opening the door to innovative newcomers.
Direct communication with customers
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Businesses can communicate directly with customers, irrespective of the platform they use. This enables better customer relationships without gatekeeper interference.
Enhanced control and transparency for consumers
Data Control and Privacy
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Gatekeepers must obtain explicit consent before using users’ data for advertising, ensuring that users have control over their personal information and greater transparency about how their data is used.
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Gatekeepers must enable consumers and businesses to access and move around their data
Freedom to choose apps and services
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Users can uninstall pre-installed apps and change default settings, empowering them to tailor their devices to their preferences and avoid being locked into specific gatekeepers
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Gatekeepers must allow the installation of third-party apps and app stores, providing users with more choices by opening-up previously closed ecosystems.
Unbiased search results and rankings
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Gatekeepers must treat their own products and services fairly in search results and rankings, ensuring that users have access to the best options, not just those that benefit the gatekeeper.
Ensuring accountability
Probing Designated Gatekeepers
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The Commission has far-reaching investigative powers when it comes to non-compliance
Imposing Penalties for Violations
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Gatekeepers can be fined up to 10% of the company’s total worldwide annual turnover, or 20% in case of repeated infringements.
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