Among the major issues facing the European Parliament in the new year is the region’s digital conversion.
Headquartered in Strasbourg, France, the European Parliament, the European Union’s only directly elected institution, has 705 representatives from 27 member states.
The European Parliament (EP) is expected to pick up where it left off last year on the Digital Services Act and the Digital Markets Act, the EP announced Monday, (Jan. 3). In addition, Parliament has called for a comprehensive legal framework for artificial intelligence technologies and cryptocurrencies. The goal is to boost the European economy, while protecting the fundamental rights of consumers and investors.
Proponents say the proposed set of regulations was developed to keep the digital space safe, make sure the fundamental rights of users are protected and establish a level playing field for merchants.
While the rise of eCommerce, social media, app stores, search engines and price comparison websites has benefitted consumers, these new opportunities also pose risks. EU member states have said the public has been exposed to illegal goods, activities and content, while new online businesses struggle to enter a market dominated by giant platforms.
The other factor at play, the EU has said, is these businesses have access to large amounts of data, giving big platforms leverage to control and set standards for important areas of the digital economy. The EU’s goal is to regain the initiative to shape those areas and set standards for the rest of the world.
Members of Parliament (MEPs) have articulated how these issues should be controlled. Among the concepts listed in the measure include: any new rules must apply to all merchants no matter where they are based; platforms should establish methods to prohibit traders selling fake or unsafe products; know your customer (KYC) rules must be instituted; consumers should have the right to know if a company is using artificial intelligence and an opportunity to opt out; and targeted advertising should be better regulated.
Parliament is expected to vote on the Digital Services Act in early 2022 and start negotiations with EU countries on the Digital Markets Act in the first half of the year.
Read more: Regulation Meets Technology in 2022 as FinTech, BigTech and Crypto Prep for New Rules
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