MEPs call for specific regulations governing large Internet players

MEPs’ demands on how digital services, including online platforms and marketplaces, should be regulated were set out in a vote in the Internal Market Committee on Monday.

Ambitiously, MEPs want to tackle and set specific rules that govern the activities of the large corporations which have a dominant position on the entire Internet ecosystem, noting that currently the lack of regulation makes it impossible for rivals and new market rivals to compete.

The new Digital Services Act also seeks to regulate online marketplaces, such as eBay and AliExpress and step up the fight against hate speech and online misinformation.

Maltese MEP Alex Agius Saliba, the Internal Market Committee rapporteur explained that: “We live in a digital world where digital services have become the new utilities of our time. Their importance for our lives will only continue to grow. The report we voted on today recognises that a unique holistic, common approach built on trust, choice, and a high level of protection fully integrating users’, consumers’, and SMEs’ concerns is needed”.

At a press briefing this afternooon, the Labour MEP said that “the new proposals strengthen the protection of fundamental rights in particular consumers rights. They reflect a new holistic approach was required, built on trust and choice, to protect users, whether private individuals but also businesses, particularly SMEs.”

He described as one of the biggest achievements of the new proposals that these would apply not only EU companies but third country companies which target EU consumers and users.

“For the first time, we are introducing at EU level new concepts, such as Know your Business Customer, special responsibilities for online marketplaces to guarantee consumer safety, stricter rules on targeted advertising and AI mechanisms and a scope that will encompass companies established even outside the EU”, Mr Saliba highlighted.

With the upcoming Digital Services Act (DSA), the EU aims to shape the digital economy not only at European Union level but also to be a standard-setter for the rest of the world, as it did with data protection.

MEPs are insisting that the European Commission addresses and tackles current shortcomings in the online environment in its DSA package, due to be presented by the end of the year.

The committee recommendations touch upon a wide range of issues, including obligations related to transparency and information for online marketplaces, product safety online, effective enforcement and supervision measures, including fines, the spread of illegal content online, artificial intelligence (AI), and regulation to prevent (instead of merely remedy) market failures caused by big platforms.

Concluding the press briefing, Alex Agius Saliba called on the European Commission to be show the same ambition shown by the Internal Market Committee of the European Parliament.