EU’s Digital Market Act: Social Media Restrictions

The European Parliament’s Committee on Internal Market and Consumer Protection (IMCO) has approved the Digital Markets Act (DMA) to introduce stricter rules for large social media platforms.

The new rules would require social media companies or any platform with more than 45 million end users per month to be more responsible for unfair business practices.

In addition, the collection of data from minors would be curbed and the use of data for “commercial purposes” would not be allowed – commercial purposes, i.e. everything that has to do with targeted marketing and personalized or “micro-targeted” advertising.

In addition, the DMA would strengthen surveillance on large platforms with so-called “unfair terms and conditions” that lead to unfair competition.

The IMCO voted for the DMA by a large majority, 42 to 2.

With its passage, several large tech companies could already violate the DMA, including Facebook, Instagram, and Twitter, if they fail to notify users of some types of data being collected.

The report says that the DMA, if adopted as it is currently written, could be used to penalize companies that fail to comply with fines of around 4% to 20% of their global sales within the next fiscal year have to calculate.

In addition, members of the European Parliament plan to set up a “European High-Level Group of Digital Regulators” to coordinate the enforcement of DMA and ensure that the regulatory authority rests more with the government than with private companies. And the EU Parliament plans to negotiate the terms and vote on the DMA next month.

PYMNTS writes that the big tech companies are having a hard time as the EU focuses on reducing anti-competitive behavior through new fines and regulations.

Read more: Big Tech Firms Rolling Back Under New EU Regulations; Microsoft has its sights set on Sweden

One of the new plans would be to limit the power of these companies in the digital economy – designed for companies with a market capitalization of at least $ 90.7 billion and at least one internet service.

And the legislature has cracked down on targeted advertising – an important source of money for Facebook and Google.



Above: It’s almost time for the Christmas shopping season, and nearly 90% of US consumers plan to do at least some of their purchases online – 13% more than in 2020. PYMNTS surveyed more than 3,600 consumers as part of the Holiday Shopping Outlook 2021 to order Learn more about what is driving online sales this holiday season and the impact of product availability and personalized rewards on retailer preferences.

Comments are closed.