The proposals for the Digital Markets Act (DMA) and the Digital Services Act (DSA) are both closer to becoming law. The DSA cleared a vote at the European Parliament's Internal Market and Consumer Protection Committee. The DSA will introduce rules on intermediary responsibility to shield users from illegal and harmful content and services, among others. The very large online platforms are subject to specific obligations due to their reach.
The proposal, which has gone through intense negotiations since its inception, now includes a ban on dark patterns (technique inducing users to unwillingly click content), prohibition of targeted advertising of minors, enhanced rules on algorithmic transparency, data access without an exemption for trade secrets, and more. There is lingering criticism that the DSA proposal still allows for surveillance advertising, hidden recommendation systems to shape consumer preferences, and insufficient complaint and redress mechanisms for users.
The DMA proposal passed the European Parliament vote. Aimed to curb the power of Big Tech and allow for fairer market entry for small and medium enterprises, the DMA will regulate unfair business practices.
For the large online platforms to be considered gatekeepers under the DMA proposal, they will now have to have