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EU: Digital Services Act and the Digital Markets Act

EU: Digital Services Act and the Digital Markets Act

The introduction of new draft laws concerning digital services and markets have ensured strict regulations for tech giants in doing business. These laws aim to limit the power of global internet firms, such as Amazon, Google, and Facebook etc. on the European market. Any violations of laws and regulations laid down hereunder are likely to attract heavy penalties.

Objectives of the draft legislation;

  1. To protect the rights of users online
  2. Establish a system of transparency and accountability for online platforms
  3. Encourage innovation and growth within the market

To avoid penalties and legal action, the dual legislation lays down;

  1. Companies that violate competition rules may be fined up to 10% of their annual revenue
  2. Companies whose user base extends up to 45 million EU users shall be subject to stricter regulations
  3. Violation of rules and regulations may even entail, selling off the business, wholly or partly
  4. Temporary suspension of service for platforms that fail to comply
  5. In case a company wishes to enter into a mergers and acquisitions agreement, prior information of the same is required to be provided to the EU
  6. The EU may decide on certain kinds of data to be shared with regulators
  7. Companies shall be held accountable for any misleading, illegal or disturbing content

These rules are said to bring about a positive change in the realm of digital services and bring order to the tech market's chaotic nature. This dual legislation shall also provide users with a safe and trustworthy environment while also protecting their freedom of expression. The Acts are based on the basic principle that what is illegal offline shall also be considered illegal online.

The main aim herein is to update laws according to the constantly changing tech environment per the ever-evolving digital age.

This means that laws shall take the following measures;

  1. Countering transfer of illegal goods, services and contents online
  2. Ensuring traceability of users in the online marketplace
  3. Content moderation and introduction of sufficient safeguards for users
  4. Ensuring transparency on a variety to issues linked with algorithms and recommendations
  5. Prevention of misuse of systems by introduction risk management systems
  6. Ensuring regulatory oversight over complex online spaces