Understanding Europe’s big push to rewrite the digital rulebook – TechCrunch

EU Legalists is to depart The biggest update to digital regulations for nearly two decades – the introduction of traffic lights for highways to bring order to the chaos caused by increased mobility. Just switch cars for data packets.

Proposals for a Digital Services Act (DSA), and a Digital Markets Act (DMA) to standardize security regulations for online trade, which would impose limits on tech giants with the aim of increasing competition in digital markets that have to be shaped is intended. The future of online business for the next two decades – both in Europe and beyond.

The block is far ahead of the US on Internet regulation. Hence today’s tech giants remain (mostly) in the United States, the rules that determine how they can and cannot work in the future are taking shape in Brussels.

What will happen faster is an interesting question for the thinker, an American breakup of a technological empire or the effective enforcement of EU rules on Internet gatekeepers.

The latter half of this year sees the European Commission of Ursula von der Leyen, which took its five-mandate in December last year, including a flotilla of digital proposals – and more teasing in 2021. The Commission has made a proposal Data governance act To encourage the reuse of industrial (and other) data, along with another data regulation and Rules on transparency of political advertisements Coming as next year. European flavored railing for use of AI Will also be introduced next year.

But it is the DSA and DMA that are critical to understanding how the EU’s executive bodies hope to re-organize Internet business practices to increase accountability and fairness – and thereby the region’s future for years to come. Promote interests.

These are subjects that are being seen elsewhere at the national level. For example, the UK is coming up with a “Online Security Bill” next year In response to public concern about the social impacts of big technology. While interest is growing Anti tech Prompted to Google And Facebook The home ground is facing charges of abusive business practices.

What will happen faster is an interesting question for the thinker, an American breakup of a technological empire or the effective enforcement of EU rules on Internet gatekeepers. Both are now vibrant possibilities – so entrepreneurs can dare to dream of a separate, independent and appropriate digital playground. One that is not ruled by a handful of abusive veterans. Although we are definitely not there yet.

The European Union, along with the DSA and DMA, is outlining an e-commerce and digital markets that, once adopted, will apply to its 27 member states – and ~ 445 million people who live there – both. Looking for a big regional pull and punch. Up and out in the global Internet giants.

While the Pan-EU law poses several challenges to the operationalization of the planned framework, it looks a cursory move by the Commission to separate the DSA and the DMA – lobbying co-election measures for the wider industry for the larger industry Makes it difficult. Only 160+ pages of proposed legislation on the table will affect them.

It is also noteworthy that DSA has a sliding scale of requirements with auditing, risk assessment, and the deepest algorithm accountability provisions for big players.

Tech sovereignty – Increasing Europe’s technical capacity and businesses – is a strategic priority for the Commission. And rule-setting is a key part of how it gets there – the creation of data protection rules that have already been updated, GDPR Is being implemented from 2018.

Although what the two new major policy packages would mean for tech companies, startup-size or market-domination, is not clear for months – or even years. The DSA and DMA have to undergo a generally co-legislative process of the European Union, looping in representatives of the governments of member states and MEPs directly elected in the European Parliament (which often come into the process with different policy priorities and agendas ).

The draft presented this month is thus a starting point. A lot can change – or even fundamentally – through the upcoming debates and amendments. Meaning Lobbying Now begins in earnest. The coming months will be important to determine who will be the future winners and losers under the new regime so startups will need to work hard to make their voices heard.

While tech giants are Infusion of money For years “whispering” in Brussels, the EU champion has longed for homegrove technology – and most of the big technology is not that.

A battle to influence the world’s most ambitious digital rulebook is almost certainly underway – including key areas such as the surveillance-based EdTech business model that currently dominates the web (the pitfalls of personal rights and pro-privacy innovation for). So there is a lot to play for those dreaming of a better web.

Initial reactions from the DSA and DMA show the two warring parties, with the US-based tech lobby destroying plans to expand internet regulation as “anti-innovation” (and anti-US), while EU rights The groups are making positive noise on the draft. – Although, with the ambition to go further and ensure stronger security for web users.

On the startup side, there is quick relief that key principles of the EU’s current e-commerce framework are set to remain untouched, with concerns that plans to rein in tech giants could be impacted – such as outside startups Exiting (and evaluating)). European founders, whose scale of ability is directly shaking from the muscle of the big technology market, have other reasons to be cheerful about the direction of policy travel.

In short, major changes are coming and it will be good to prepare businesses and entrepreneurs for the changing needs – and to seize new opportunities.

Read on for a breakdown of the major objectives and requirements of the DSA and DMA, and additional discussion on how additional planning can shape the future of a startup business.

The DSA aims to standardize regulations for digital services that act as intermediaries by connecting consumers to goods, services, and content. This will apply to a wide variety of digital services, including network infrastructure providers (such as ISPs); Hosting services (such as cloud storage providers); And online platforms (like social media and marketplaces) – applying for all services in the European Union, where they are based.

The current European Union e-commerce directive was adopted in the year 2000 to see if the core principles are still fit for purpose. And the Commission has essentially decided that they are. But it also wants to improve consumer safety and set new due diligence obligations to transparency and accountability on the services business – what is happening now and the effects of demonetized online (whether hateful content or dangerous / illegal products) Answering a smorgasbord of concerns around. ).

Some EU member states are also drafting their own laws (In areas like hate speech) Which threatens the regulatory fragmentation of the block’s single market, with lawmakers incentivizing them to come up with harmonized PAN-EU rules (so the DSA is a regulation, not a directive).

The package rules will apply for the purpose of determining how Internet businesses respond to illegal goods (content, services, goods and so on) – including standardized notice and response procedures to deal with illegal content (an area that is a voluntary European Managed by association) Code of Conduct on Illegal Hate Speech Up til now); And the “No Your Customer” principle for the online marketplace (already a familiar feature in more heavily regulated sectors like fintech) that aims to simply respond within the marketplace under a new name for sellers of illegal products.

There is also a big push around transparency obligations – with requirements in the proposal for platforms to provide “meaningful” criteria used to target advertisements (Article 24); And explain the “main parameters” of the recommendation algorithm (Article 29), as well as the requirements for minimizing user controls (including at least one “non-profit” option).

The purpose of overreaching here is to ensure that European users can obtain the necessary information to be able to exercise their rights.