Our new digital world

DSA – Services

DSA targets internet intermediary service providers, in particular large internet platforms and app stores. The regulation is aimed at combating service providers’ inactivity in the field of consumer protection and the detection of illegal content. After its implementation, service providers will be forced to introduce strict regimes relating to the removal of potentially illegal online products and services.

What is more, users will be empowered to report illegal online content easier than before. Once reported, intermediary service providers will not be able to release themselves from liability for the stored information on the grounds that the service provider does not have actual knowledge of illegal activity or illegal content. This may encourage pre-emptive content takedowns, which in turn will, for example, indirectly impact developers and game publishers who rely on app stores as main channels of distribution.

Non-compliance with DSA could result in fines of up to 6% of worldwide turnover. However, it must be noted that the penalties are imposed for violating the regulation (lack of proper procedures and follow-up actions, etc.) and not in connection with any violation or illegal content hosted by the service providers.

DMA – Markets

DMA provides rules for governing the operation of large internet platforms controlling access to the vast majority of online services and shaping the entire digital economy (so-called gatekeepers). These platforms will be forced to adhere to new rules ensuring a fair and open online platform environment.

What is particularly interesting is that it is already clear that DMA will target Apple App Store, Google Play and similar providers. Indirectly, DMA will also have an impact on content creators and developers linked to those platforms.

Since gatekeepers will no longer be able to ensure uniformity of standard applications on their machines (end users will be allowed to uninstall all preinstalled applications), developers and game publishers will have to create products that work in a more diverse software environment. On the other hand, game publishers will gain better access to user data aggregated by gatekeepers. One of the objectives of DMA is to ensure a higher degree of data portability and interoperability in order to boost competition on digital markets.

Although DMA may be perceived as a challenge from the perspective of app/game developers and publishers, it also provides them with new tools and opportunities, levelling the field on a market dominated by large players.

Next Steps

The next steps for our digital future are clear. A delegation from the European Parliament’s Internal Market Committee will visit the Silicon Valley headquarters of the largest players like Meta, Google, Apple and others to discuss in person the digital legislation in the pipeline. The market will keeping a very close eye on their response.

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Jeremiasz Kusmierz is focused on new tech and believes it is the foundation of future business. His global outlook is highlighted by his participation in multinational deals involving China and Europe. His work is spread across dispute resolution, employment, compliance, and risk management matters.

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Published: May 2022 l Photo: DC Studio - stock.adobe.com