EC Platform Proposals Not Strong Enough, Stakeholders Say

European Commission proposals don't go far enough to address problems raised by online platforms, stakeholders told a webcast conference Thursday. EU lawmakers, civil society, internet companies, broadcasters and others backed the Digital Services Act and Digital Markets Act. But they said DSA and DMA need work. DSA measures could counter illegal content and require platform transparency, building on EU e-commerce directive intermediary liability rules (see 2012150022). DMA further obligates very large platforms ("gatekeepers").

DSA is "timely and needed," but "it isn't enough," said Christel Schaldemose, a Danish member of the European Parliament and the Group of the Progressive Alliance of Socialists and Democrats, responding to the DSA proposal for the Internal Market and Consumer Protection Committee. She cited the proposed one-size-fits-all approach to liability, particularly for online markets, saying platforms should have more responsibility for products sold on their sites.

The EC defended its approach. DSA is the most comprehensive attempt at regulating content moderation and illegal content, said Prabhat Agarwal, unit head-digital services and platforms, directorate general-communications networks, content and technology. It moves away from an individual approach to removing illegal content via administrative orders or notices, and addresses how platforms organize their services. The EC sees "increasing convergence" between social media and online markets, which DSA accounts for, he said.

The DSA is "extremely strong" and needs clarity on questions such as what the criteria are for very large platforms, said Siada El Ramly, director general-Dot Europe, an association representing companies such as Facebook, Google and Twitter. Content moderation can be a "double-edged sword," said European Digital Rights Executive Director Claire Fernandez. DSA "sits on the fence" and must deal with the delicate balance between free speech and combating harmful online content, she said: The measure seems to be a missed opportunity to address the root cause of online harm -- online advertising and data exploitation.

Platforms have systemic roles in society and pose risks to the digital market, said Gerard de Graaf, EC director-digital transformation. The pandemic made the need for regulation more obvious, and if the EU doesn't do it, member countries will, causing fragmentation, he said. DMA is a new, hybrid type of regulation that will let regulators intervene more quickly than the usual case-by-case antitrust approach, he said. De Graaf dismissed claims the plan is anti-innovation, saying upfront rules will prevent creeping monopolization in the platform market and force companies to play fairly. The EC hopes the DSA and DMA can come into force by mid-2023.

This planned regime doesn't go far enough to deal with problems raised by data and could do more harm than good, said Apple Vice President-Corporate Affairs and Compliance Law Kyle Andeer. Stakeholders should focus on how some gatekeepers' practices hurt consumers, but the legislation itself could harm consumers by stifling innovation, he said. A fair digital market is crucial for broadcasters, said Christophe Roy, board chairman of the Association of Commercial Television in Europe. DMA must ensure diverse and rich European cultural content over the long run, he said.

Andeer cited a "very real danger" of fragmentation as countries address platform regulation differently. Similar analyses are taking place worldwide and there's commonality on objectives, said Richard Feasey, speaking for the Centre on Regulation in Europe. He said what's unrealistic is expecting a global approach.