EU edges ahead with new digital laws

Governments around the world are working on new regulation for the evolving digital platform environment.

Here in Australia, we’ve seen the News Media Bargaining Code, the Online Safety Act, proposals for new privacy laws, and the self-regulatory Australian Code of Practice on Misinformation and Disinformation. The Australian Competition and Consumer Commission (ACCC) is now working on a major new report to be released later this year that looks at a range of competition and consumer protection issues associated with digital platforms.

Back in Europe two weeks ago, the European Parliament moved ahead of other jurisdictions when it finally passed legislation that has been in development for some time. Unlike Australia, the EU has split the issues into two distinct Acts: the Digital Markets Act (DMA) and the Digital Services Act (DSA).

The DMA tackles competition aspects relating to large online platforms referred to as ‘gatekeepers’. It tries to stop platforms treating their own products and services more favourably and seeks to enable better interoperability, for example in requiring dominant messaging platforms to allow users to exchange messages from users of smaller services.

Meanwhile, the DSA targets providers of ‘intermediary services’, imposing different levels of obligations on intermediaries such as ISPs and domain name registries, content hosting services (like web hosting and cloud hosting services), online platforms (like marketplaces, app stores and social media networks) and what are called ‘very large online platforms’ (online platforms and search engines with over 45 million users in the US). The Act doesn’t itself identify certain content as illegal – that is dealt with under national laws or other EU laws – but it imposes obligations to take due diligence. It deals with issues like the removal of illegal content on social media and checking the information provided by online traders to improve online marketplaces. It is also designed to provide users with better control over their data. Platforms qualifying as ‘very large online platforms’ will have additional obligations to address online risks and provide greater algorithmic accountability, with annual independent auditing.

The new laws will commence in early 2023. In summarising the rationale underpinning this new legislation, the European Commission said: ‘The two bills aim to address the societal and economic effects of the tech industry by setting clear standards for how they operate and provide services in the EU, in line with the EU’s fundamental rights and values.’ I chaired a panel discussion on this for the International Institute of Communications last week, with Luke Van Hooft from Optus and Kara Hinesley from Twitter. The session also included a keynote address from Menno Cox, Head of Sector for global aspects of digital services and platforms with the European Commission’s DG CNECT. You can watch Menno’s presentation here.

Derek Wilding, CMT Co-Director

 

This was featured in our eNewsletter of 22 July, click to read the full edition. 

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