Will Digital Marketplace Act bring privacy security to EU citizens in the future?
On 23 November, the Parliament's Internal Market and Consumer Protection Committee (IMCO) approved the Digital Market Act (DMA) after lengthy discussions, negotiations, and compromises.Â
There is no doubt that this most stringent digital marketplace regulation will ever have far-reaching consequences for large internet companies in the EU and worldwide.
In this blog, I will explain why the Commission has chosen to oversee large internet companies and one of the focuses of the bill that has been adopted.
Firstly, the following video will provide you with some of the reasons for the Commission's strict policy.
The latest Digital Marketplace Act sets out higher and more specific conditions for 'gatekeeper' companies than the draft proposed by the EU last year.
 The company needs to offer its core platform services in at least three EU countries, with at least 45 million end-users and more than 10,000 business users per month. Secondly, it must have an annual turnover of €8 billion and a market capitalization of €80 billion within the European Economic Area (EEA).Â
Although it is not surprising that most of the internet companies we know are officially included in the scope of the "gatekeeper" companies, it is helpful to define the specific conditions for the implementation of the law.
In the Digital Marketplace Act, a highly relevant article of law for online technology has received a great deal of attention: "gatekeeper" companies are not allowed to take advantage of data to target advertising to users without their express permission. In particular, the personal data of minors may not be processed for commercial purposes.
While these restrictions have a positive effect in terms of promoting fair competition among internet companies across the EU and protecting the privacy of the majority of EU citizens, there are certain pitfalls behind the policy.
Blocking targeted advertising would increase the cost of using internet platforms for EU citizens. In the case of YouTube, for example, targeted advertising accounts for a large part of its revenue stream.Â
If the policy is implemented, it is difficult to imagine how much the internet platforms will ask their users for, and multiple usage fees from different internet platforms may force people to reduce their expenses by giving them permission to push targeted ads to them. The right to privacy is one of the fundamental rights agreed in the EU Charter, and it is absurd to guarantee the fundamental rights of citizens by means of payment.
In my opinion, the Digital Marketplace Act is just the beginning, and it is good that the EU is putting more constraints on 'gatekeeper' companies, but we should be more cautious about the implementation of subsequent acts to ensure that EU citizens are guaranteed their fundamental rights at an affordable price.
1.https://protonmail.com/blog/digital-markets-act-explained/
2.https://epthinktank.eu/2021/05/06/digital-markets-act-eu-legislation-in-progress/