Digital Markets Act Would Remake Digital World In EU and Possibly Elsewhere (Free Version)

Michael Kans

May 25, 2022 • 5 min read

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Microwave

The EU is closing in on enacting the DMA, another tech-world altering bill the U.S. and tech will hate.

Shortwave

The European Parliament and the Council of the European Union finally released the compromise text of the “Digital Markets Act” (DMA) and that “ will address a number of societal and economic issues by limiting the market power of big online platforms and to make the digital market safer, fairer and more competitive.” “Gatekeepers” will come under heightened scrutiny with greater responsibility to EU residents and businesses. To be a gatekeeper, a company must offer a “core platform service” that has a significant impact on the EU’s internal market, is an important gateway for businesses to reach people, and holds such an entrenched and durable position at present that it will likely continue to hold in the future. Some of the parts of the digital world that would be subject to the DMA include operating systems, social networks, virtual assistants, online advertising, and other sectors. Gatekeepers would face restrictions on processing personal data and be required to allowed interoperability. The possible categories of gatekeepers encompass virtually the entire digital world, and failures to comply could result in fines of up to 10% for first offenses, and 20% for repeat offenses. And so, for Amazon, a company that reported more than $469 billion in gross revenue for 2021, violations of the DMA could be of a magnitude not yet seen under the General Data Protection Regulation (GDPR.)

Longwave

The “Digital Markets Act” (DMA) is the first half of an ambitious legislative package that will help the European Union protect its residents and promote competition, or so the legislation’s proponents claim. The second bill, the “Digital Services Act,” was recently agreed upon by the Council of the EU and the EU Parliament. Both packages need to clear further procedural steps at both the Council and Parliament, but the plan at present is to finish work by July.

And, here are developments and articles from last month. Being subscribed would mean getting these in a more timely fashion.

Other Developments

The United States (U.S.) Department of Homeland Security (DHS) announced “the results of its first bug bounty program” and [i]n the first phase of this program, more than 450 vetted security researchers identified 122 vulnerabilities, of which 27 were determined to be critical.”

The Biden Administration published a fact sheet on its “Domestic Counter-Unmanned Aircraft Systems National Action Plan,” through which “the Administration is working to expand where we can protect against nefarious UAS activity, who is authorized to take action, and how it can be accomplished lawfully.”

The United States (U.S.) Department of Homeland Security (DHS) issued a fact sheet on its international cybersecurity efforts, for “[p]rotecting against cyber threats at home also requires collaborating with partners abroad and DHS agencies and offices also play a critical role in enhancing cybersecurity efforts worldwide.”

France’s Commission Nationale Informatique & Libertés (CNIL) announced simplified enforcement procedures that “will enable the CNIL to better act in the face of the increasing number of complaints since the entry into force of the GDPR.”

The United States (U.S.) Consumer Financial Protection Bureau (CFPB) announced “that it is invoking a largely unused legal provision to examine nonbank financial companies that pose risks to consumers” and “Nonbanks do not have a bank, thrift, or credit union charter; many today operate nationally and brand themselves as “fintechs.”

The European Parliament’s Internal Market and Consumer Protection Committee adopted its position on the revised Radio Equipment Directive that would require all manufacturers of small and medium-sized electronic gadgets devices would “to be equipped with a USB Type-C port, regardless of the manufacturer…[and] [e]xemptions would apply only for devices that are too small to have a USB Type-C port, such as smart watches, health trackers, and some sports equipment.”

The National Institute of Standards and Technology’s (NIST) National Cybersecurity Center of Excellence (NCCoE) “released a new preliminary draft publication, Special Publication (SP) 1800-33 Volume B, 5G Cybersecurity: Approach, Architecture, and Security Characteristics.”

Tweet of the Day

The richest guy on the 2021 Forbes 400 owns the Washington Post. Number 2 now owns Twitter. Number 3 owns Facebook. Numbers 5 and 6 started Google. Numbers 4 and 9 started Microsoft. Number 10 owns Bloomberg. Free speech? You decide.
— David Rothkopf (@djrothkopf) April 25, 2022

Digital Markets Act Would Remake Digital World In EU and Possibly Elsewhere (Free Version)

Michael Kans

Other Developments

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