The New EU Rules: DSA and DMA - How Will Big Tech be Affected?

EU Introduces Rules Intended to Create a Safer, More Open Digital Landscape throughout the European Union

The EU recently introduced a single set of rules known as the Digital Services Act (DSA) and the Digital Markets Act (DMA). They believe these new rules will lead to a more open and safer digital zone across the European Union. With the introduction of the new rules, EU leaders hope an increase in growth and innovation, both within Europe and across the world, is the result.

The DSA will impact digital services like websites and digital platforms. They will target social networks and digital platforms and marketplaces where content is commonly shared. The DMA, on the other hand, will focus on gatekeepers; digital platforms that act as the bridge between businesses and their digital services and online consumers.

The new proposal comes on the heels of legislation like the General Data Protection Regulation (GDPR) that ensured tech companies seriously consider the privacy rights of digital users when collecting their personal information. By leveling the playing field and protecting digital user rights even further, these new proposals reinforce to the big tech companies that regulators are watching them very closely.   

How will Big Tech be affected? 

Although they are just proposals at this time, the rules will likely be ratified within a few years and will mainly impact the bigger tech companies like Google, Twitter and Facebook. They will face heavy fines if they don’t fall into compliance with the DSA and DMA:

  • DSA – fines will be up to 6% of global turnover; if they don’t ‘fix’ their issue, their service can be suspended.
  • DMA – fines can go up to 10% of the firm’s world-wide revenue and up to 5% penalty payments of average daily turnover will be mandated; if they don’t ‘fix’ their issue, they may be required to divest parts of their business.

As with the GDPR and other acts introduced within the last few years, the DSA and DMA rules will work to limit the immense power big tech companies have while finding a balance between the privacy and security rights of digital users and the flow of information. DSA and DMA are designed to update the rules concerning digital services and increase market fairness within big tech.

What’s Next?

The European Parliament and the EU Member States will discuss the proposals within the Council of the European Union. First, they will have to agree on their own versions of the DSA and the DMA, with the European Commission, the European Parliament and the Council of the EU then coming to an agreement on the final text before the new rules are implemented. This process, as mentioned above, will probably take a few years, but realizing the profound effect it will have on every business once it’s the law, it’s very important to follow the progress of these proposed regulations.

About Author

Tim has been building, designing, and executing websites since 1999, and joined in 2009. His specialties include online e-commerce consulting, web and business marketing, and project management. With technical and creative savvy, Tim is a born entrepreneur & problem-solver. When not staring soulfully at Google Analytics, Tim enjoys roughing it Apple-free in the great outdoors.

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