Without many strong regulations to adhere to, the European Union has considered certain online companies to enjoy freedom akin to the “Wild West”—but no more, as the junction of 27 European countries has established a clear-cut guideline to follow, lest they are fined. In particular, the Digital Markets Act (DMA) and Digital Services Act (DSA).
With a focus on big online platforms whose role is described as “gatekeepers” over the wide expanse of the virtual domain, the DMA enforces two things:
- The enabling of third parties to interoperate with their services
- The allowance of business users to access the data they produce
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Additionally, said “gatekeepers” will have to refrain from the following:
- Ranking their products or services more favorably over competing third parties on the platform
- Making it hard for users to uninstall pre-loaded applications, or to use third-party apps and app stores
- Exploiting users’ data for targeted advertising, unless consent is otherwise given
- Meanwhile, the DSA has established four main considerations to follow:
- Reinforced traceability and checks on individuals who conduct trades in online marketplaces, ensuring that the services or products they offer are safe
- New ways to oppose illicit content online and the imperative for platforms to respond in a quick manner
- Prohibition on misleading practices and certain specific targeted advertising methods
- More transparency and accountability of platforms
Source: European Parliament