Digital Services Act: MEPs vote for stricter rules on targeted advertising and content moderation

To recall, the DSA proposal, which was tabled by the European Commission a year ago, is due to usher in new obligations for online businesses providing services in the EU. Its stated aim is to keep users safe from illegal goods, content or services online, while also amending part of the e-Commerce Directive from 2000.

The Report by the Danish Social-democratic MEP, Christel Schaldemose, was adopted by 36 votes in favour, 7 against and with 2 abstentions. According to Ms Schaldemose, the Report has been drawn up according to the principle that “what is illegal online is also illegal offline.” Significantly, MEPs have included a number of changes to the Commission’s original proposal.

Among other amendments, MEPs proposed restrictions on online advertising that targets minors, including direct marketing, profiling and behaviourally targeted advertising for commercial purposes. The Report also provides for more transparent choices for all recipients of services, including information on how their data will be monetised. Very large platforms with over 45 million users in Europe would have to give users the option to opt out of tracking to see personalised content on the services they use.

Furthermore, online platforms would be prohibited from using “dark patterns”, that is deceptive user interfaces to influence users’ behaviour. Additional obligations have been put forward for platforms primarily used for the dissemination of user-generated pornographic content.

MEPs have also gone further than the Commission’s original proposal when it comes to algorithm-based ranking systems that promote, for example, particular products to buy, videos to watch or news items. The Report states that very large online platforms should provide consumers with the choice that includes at least one recommender system which is not based on profiling.

In other changes to the Commission proposal, the Report states that online platforms and regulators should be able to challenge orders from European public authorities to remove access to specific pieces of content. At the same time, MEPs emphasised that recipients of digital services and organisations representing them must be able to seek redress for any damages resulting from platforms not respecting their due diligence obligations.

While the Internal Market Committee’s Report is more stringent in places than the Commission’s proposal, it also includes certain exemptions from the new rules for micro, small and medium-sized enterprises.

Regarding future enforcement of the obligations, the Committee has proposed some adjustments to the role of “Digital Service Coordinators” in the Member States and the balance of responsibilities with the European Commission.

On 25 November, Member States in the Council already adopted their general position on the DSA.

Next Steps

The European Parliament’s next plenary session in January 2022 is expected to vote to adopt the amended DSA proposal. Once approved, the text will then act as the Parliament’s mandate for the three-way (“trilogue”) negotiations with the Council and Commission to reach a final agreement. The incoming French Presidency of the EU is aiming to get the final text over the line in the first half of 2022, although this remains an ambitious timetable.

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