what impact for tech giants?

What impact for tech giants?

European legislation to limit the power of large platforms

This Tuesday, July 5, MEPs approved the two texts aimed at imposing certain obligations on the digital giants: the DMA and the DSA. The objective: is to limit the domination of the big platforms in the European Union and also to put an end to the zones of lawlessness on the Internet. This is another important step for the digital market!

In an article on LinkedIn, Thierry Breton, European Commissioner, spoke on the subject: “The EU is the first jurisdiction in the world to establish a comprehensive standard to regulate the digital space. We have created a common framework for digital services, which must be respected equally everywhere in a single market of 450 million consumers”.

What new obligations for tech giants?

DMA: the regulation of digital markets

The objective: is to prohibit the anti-competitive practices of the major platforms, that is to say mainly GAFAM: Google, Apple, Facebook, Amazon, and Microsoft.

Among the measures that should be imposed on the tech giants:

  • Messaging services such as those of Meta (WhatsApp, Facebook Messenger) or that of Apple (with iMessage), will have to open up and be interoperable with other smaller messaging platforms if they do so. request.
  • The requirement of “explicit consent” in order to serve targeted advertisements. The aim is to strengthen the protection of personal data which comes from several sources for advertising profiling purposes.
  • A real choice will have to be left to users to select their browser, their search engine, or their virtual personal assistant. This measure aims to fight against the practices of tech giants which impose their own applications by default.
  • Takeover operations will also be closely monitored by the European Commission in order to limit acquisitions that aim to bury competition (like the acquisitions of WhatsApp and Instagram by Facebook which were perceived as anti-competitive by the FTC).

The DSA: the regulation of digital services

The objective: better regulate online content, and in particular, limit excesses on social networks.

Among the measures that should be imposed on the tech giants:

  • Access to their algorithm, in complete transparency,
  • The rapid removal of illegal content,
  • More responsible marketplaces (checking the identity of sellers),
  • A strengthened fight against “revenge porn”,
  • Transparent content recommendation systems,
  • Enhanced control over targeted advertising,
  • Independent evaluations and audits…

What are the next steps?

Now that the 2 texts have been approved by the European Parliament, they will also have to be validated by the European Council:

  • AMD: discussions are expected to take place in July. If the text is validated, it will enter into force 20 days after its publication in the Official Journal of the European Union. The DMA rules will then be applied 6 months later (early 2023).
  • DSA: discussions are expected to take place in September. Its entry into force will be effective 20 days after its publication in the Official Journal of the European Union. The DSA rules will then be applied 15 months later for the digital players concerned (in 2024).

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