The European Union is implementing the Digital Services Act and the Digital Market Act, which impact online marketplaces and social media platforms. This package of rules will create a safer digital space for users and fight rogue sellers.
Earlier this year, the EU implemented a new law stating that online marketplaces need to report sales made on their platforms by end users to the tax office. In that way, the EU wanted to make economic activities of vendors more transparent. Now, a new set of rules is coming into place.
‘The rules will be implemented across the whole European Union.’
The acts will be implemented across the whole European Union. Starting today, online platforms need to inform the EU about their number of active users. This will give the EU an idea of the largest online services. As of this summer, the biggest platforms will be obligated to assess the risks of their commerce and services annually.
More information about sellers on platforms
The EU wants to establish a level playing field for online platforms, while also being able to detect rogue sellers. In order to do so, marketplaces need to make more information available about their partner sellers. The new rules will also make it easier for users to delete their account and the accompanying data. Filing complaints with an online platform will also become easier.
‘The regulation will give digital users a stronger legal position.’
“This EU regulation will give business and private users of digital services a stronger legal position”, said Dutch Minister of Economic Affairs Micky Adriaansens. “Modernizing the EU digital market is important to promote fair competition and protect consumers. We continue to stimulate innovation, become less dependent on large platforms, create more market access, counter the spread of illegal content and scams of consumers and entrepreneurs.”
Protection from advertisements
Additionally, the new rules will also prohibit the personalization of advertisements based on religious preferences or sexual orientation. Minors will be more strictly protected from inappropriate ads.
‘A levy will pay for the enforcement of the new rules.’
Online platforms and search engines will be charged with responding more strictly against fake news and disinformation. The EU is creating a new tax for online platforms, which will pay for the enforcement of the new rules. Platforms have a year to make the changes that are needed to follow the new rules.