Europe seals a deal on tighter rules for digital services

In the small hours local time, European Union lawmakers secured a provisional deal on a landmark update to rules for digital services operating in the region — grabbing political agreement after a final late night/early morning of compromise talks on the detail of what is a major retooling of the bloc’s existing ecommerce rulebook.

The political agreement on the Digital Services Act (DSA) paves the way for formal adoption in the coming weeks and the legislation entering into force — likely later this year. Although the rules won’t start to apply until 15 months after that — so there’s a fairly long lead in time to allow companies to adapt.

The regulation is wide ranging — setting out to harmonize content moderation and other governance rules to speed up the removal of illegal content and products. It addresses a grab-bag of consumer protection and privacy concerns, as well as introducing algorithmic accountability requirements for large platforms to dial up societal accountability around their services. While ‘KYC’ requirements are intended to do the same for online marketplaces.

How effective the package will be is of course tbc but the legislation that’s was agreed today goes further than the Commission proposal in a number of areas — with, for example, the European Parliament pushing to add in limits on tracking-based advertising.

A prohibition on the use of so-called ‘dark patterns’ for online platforms is also included — but not, it appears, a full blanket ban for all types of digital service (per details of the final text shared with TechCrunch via our sources).

See below for a fuller breakdown of what we know so far about what’s been agreed. 

The DSA was presented as a draft proposal by the Commission back in December 2020 which means it’s taken some 16 months of discussion — looping in the other branches of the EU: the directly elected European Parliament and the Council, which represents EU Member States’ governments — to reach this morning’s accord.

After last month’s deal on the Digital Markets Act (DMA), which selectively targets the most powerful intermediating platforms (aka gatekeepers) with an ex ante, pro-competition regime, EU policy watchers may be forgiven for a little euphoria at the (relative) speed with which substantial updates to digital rules are being agreed.

Big Tech’s lobbying of the EU over this period has been of an unprecedented scale in monetary terms. Notably, giants like Google have also sought to insert themselves into the ‘last mile’ stage of discussions where EU institutions are supposed to shut themselves off from external pressures to reach a compromise, as a report published earlier today by Corporate Europe Observatory underlines. That illustrates what they believe is at stake.

The full impact of Google et al‘s lobbying won’t be clear for months or even years. But, at the least, Big Tech’s lobbyists were not success in entirely blocking the passage of the two major digital regulations — so the EU is saved from an embarrassing repeat of the (stalled) ePrivacy update which may indicate that regional lawmakers are wising up to the tech industry’s tactics. Or, well, that Big Tech’s promises are not as shiny and popular as they used to be.

The Commission’s mantra for the DSA has always been that the goal is to ensure that what’s illegal offline will be illegal online. And in a video message tweeted out in the small hours local time, a tired but happy looking EVP, Margrethe Vestager, said it’s “not a slogan anymore that’s what illegal offline should also be seen and dealt with online”.

“Now it is a real thing,” she added. “Democracy’s back.”