it’s done ! After the DMA, Europe voted in favor of the DSA, a new part of its policy aimed at regulating the practices of web giants.
On the Old Continent, Google, Apple, Facebook, Amazon, Microsoft and Twitter will have to comply with very strict new rules. And beware of penalties if they don’t. This project, called for by European Commissioner Thierry Breton, will put an end to the sometimes scandalous practices of the web giants.
Concretely, what will change? What exactly is DSA and DMA? What are the penalties in case of violation? We will explain everything to you.
DSA, DMA: What is it?
DMA and DSA are complementary ingredients that aim to Supervising the activity of digital giants.
AMD Means Digital Market Law. This text, which brings together about two dozen rules, was introduced by European authorities as a way to reduce the monopoly of large digital companies, including GAFAM (Google, Amazon, Facebook, Apple, Microsoft) as well as Twitter.
Other companies are also part of the batch but the final list has yet to be established. The text shows that the companies involved are those “Provide platform services with a market capitalization of at least 75 billion euros or an annual turnover exceeding 7.5 billion euros”.
They should provide services like Browsers, messaging or social media with at least 45 million monthly end users in the EU and 10,000 annual commercial users.
The purpose of DMA is to enhance competition To give companies not the size of Google or Apple an opportunity to participate in the digital economy. The DMA also reviews the rules for targeted advertising.
DSA, was concluded after DMA. Means Digital Services Law. And if the discussions last longer, it is because the problems are more real for the users. This is the text that goes It prompted the web giants to completely review their operations in Europe.
To simplify, the DSA aims to severely penalize users’ abuse on the web, by giving responsibility to GAFAM. Thus, in the face of hate speech, for example, social networks will not be able to wave an excuse “We are only brokers.”
Concretely, what will change for users?
This is all well and good, but how will all of this materialize on a daily basis for users? Let’s focus first on Changes involved in dynamic mechanical analysis (DMA). Upon its entry into force, the user may:
- Choose your browser, virtual assistant or search engine freely
- Remove all pre-installed applications on electronic devices
- Choose your App Store, including on iPhone. It is a real blow for Apple, which will have to allow the installation of alternative stores to the App Store.
- Choose to freely integrate their payment methods into their smartphone. Here again, you’ll see Apple in red because it will have to unlock the iPhone’s NFC chip for systems other than Apple Pay
- Send a message to its interlocutors to and from any service. For example, if we send a message from WhatsApp to a user with iMessage, the messages must be interchangeable. This is called the interoperability of messaging platforms
DSA also brings big changes In the daily life of users. Here are the main changes made:
- Prevent digital players from targeting ads to children or based on sensitive data (eg sexual orientation, religion)
- Openness of algorithms to authorities. A team of specialists (150 specialists initially according to Thierry Breton) will be able to analyze the sacred algorithms of the platforms on demand.
- Platforms (particularly social networks) will have to form moderation teams, capable of understanding the language of each country and who will have to ensure that the laws of reality are enforced in the virtual world. For example, hateful and racist comments, insults and harassment will all be comments that will be moderated by the platforms.
- Social networks will have to integrate a simple reporting tool with the obligation to react quickly
- In the event of a crisis, digital players will have to respond at the request of Europe
These are the main changes that the new European texts will bring. Other technical rules are also part of the text, but they do not necessarily have a direct impact on the daily lives of users. Be that as it may, if they don’t want to lose a market of 450 million users (larger than the US), the web giants will have to comply.
When will these new rules be implemented?
The DMA will take effect before the DSA. It was tentatively scheduled for January 2023, DMA rules will instead be implemented in Spring 2023 According to the timetable put forward by the European authorities.
DSA will be implemented at the end of 2023It’s time for the digital giants to review their copy. In fact, DSA points to profound changes in their policies, but also in their teams. As we explained above, digital players will have to expand their moderation teams, for example.
What are the penalties for not respecting the rules?
In case of non-compliance with the rules of the DMA, The European Commission imposed severe sanctions. Thus, companies that do not play the game will be fined Up to 10% of global trading volume for the previous fiscal year And up to 20% in case of recurrence.
Take, for example, Apple, which generated $365 billion in sales in 2021, and the fine could be as high as $36.5 billion. By comparison, Germany, the largest contributor to Europe’s budget, contributed 38 billion euros in 2021.
And in case of systematic violation, the Commission also gives itself the right to ban the purchase of other companies for a certain period.
Sanctions against companies Who do not respect the rules of the DSA It is just as dangerous. Violation fines It can reach 6% of the global trading volume. And in case of repeated violations, the EU gives itself the right to completely ban a company from operating on the European market. In other words, the EU could decide to cut off Facebook, Twitter, Instagram, etc. In all European countries if the company does not comply with the rules.