The European Union (EU) Institutions have been in the negotiation and preparation process for nearly two years on the enactment of the Digital Markets Act and the Digital Services Act in order to ensure and control the content of digital platforms such as Facebook, Twitter and Youtube that users are more secure. The relevant regulation is expected to be enacted in a short time.
Digital Markets Act
Digital services and online platforms in general are playing an increasingly important role in the economy. Therefore, with the Digital Markets Act, it is aimed to contribute to the smooth functioning of the internal market by introducing strict rules and practices to limit market power to major digital platforms such as Google, Apple, Meta and Microsoft.
Platforms that provide online intermediation services, social networks, search engines, operating systems, online advertising services, cloud computing and video sharing services that meet the relevant criteria will be referred to as “gatekeepers”.
According to the Digital Markets Act , for a platform to be defined as a gatekeepers;
- Annual turnover of 8 billion Euros, average market value of 80 billion Euros in the last financial year,
- Provide a base platform service in at least three EU countries
- Must have at least 45 million monthly end users plus 10,000+ business users.
The gatekeepers should avoid imposing unfair conditions on businesses and consumers with respect to each of its core platform services. In addition, the personal data of minors should not be processed for commercial purposes such as direct marketing, profiling and behaviorally targeted advertising.
If the gatekeeper is found to have intentionally or negligently failed to fulfill his obligations regarding fines, a fine of not less than 4% and not more than 20% of its total worldwide turnover in the previous financial year will be imposed.
Due to the Digital Markets Law, it is foreseen that large companies such as Google, Apple, Meta and Microsoft will change their activities as a result of the strict intervention to be applied.
Digital Services Act
The Digital Service Law is built on European values such as respect for human rights, freedom, democracy, equality and the rule of law. It also sets an unprecedented new standard for accountability of online platforms for illegal and harmful content. It will help scale smaller platforms by defining a single set of rules in the domestic market, as well as providing better protection for internet users and their fundamental rights.
The Digital Services Act aims to create a safe and accountable online environment. Platforms should be transparent about content moderation decisions and avoid offering unsafe products on marketplaces.
The Digital Services Act sets clear and compliant obligations for platforms commensurate with size, impact and risk. It empowers the Commission to oversee very large platforms, including the imposition of effective and dissuasive sanctions of up to 6% of global turnover, and even a ban on operating in the EU single market in case of repeated serious violations.
The regulation introduces EU-wide obligations that will apply to any digital service that connects consumers to goods, services or content, including new procedures for faster removal of illegal content and comprehensive protection for users’ fundamental rights online.
Online intermediary services under the act include:
- Intermediary services providing network infrastructure: Internet access providers, domain registrars;
- Hosting services such as cloud computing and web hosting services;
- The very large online search engines with more than 10% of the 450 million consumers in the EU and therefore greater responsibility for blocking illegal content online;
- Online platforms that bring together sellers and consumers, such as online marketplaces, app stores, collaborative economy platforms and social media platforms;
Massive online platforms that reach more than 10% of the 450 million consumers in the EU, which may pose certain risks in the dissemination of illegal content and social harm.