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Intermediaries such as platforms are and remain exempt from liability for online content and the prohibition of general monitoring remains. Both are two cornerstones of internet regulation and will be enforced under the new rules. This is also something we have pleaded for in our petition. The liability of platforms is harmonized by the EC throughout Europe and clarified on the following points:
However, the EC wants platforms to do more against illegal content. To this end, the following proposals are made (a distinguish is made between intermediary services, hosting services, online platforms, very large platforms and graduated on the basis of those services' size and impact):
A complete overview of proposed measures can be found through the link at the end of this blogpost.
The European Commission seems to have an eye for small platforms (fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed €10 million) and wants to prevent them from having to deal with disproportionate measures (something we also have called upon in our petition), although they are also responsible for removing illegal content. To this end, the following is proposed:
Small and micro-enterprises are exempted from the most costly obligations (an overview of these obligations can be found at the website of the EC, link at the end of this blogpost)
In its proposal, the EC makes a distinction between platforms and very large platforms (45 million users, 10% of the number of EU residents). This threshold is a point of concern because it may disincentivize startups from scaling in the EU.
These very large platforms like Google and Facebook are subject to more obligations with regard to transparency of their recommender systems and user choice for access to information and data exchange with authorities. These platforms will also be subject to a new oversight structure. This will comprise a board of national Digital Services Coordinators, supervisors on Member State level who are responsible for the application and enforcement of the DSA.
What are the next steps?
The next step is for both the Member States and the European Parliament to reach a position. Consultations between Member States will take place in the coming period. This process will probably take a long time.
Read more about the topic via the links below:
For a smaller platform such as ours (Project Cece), it is important that the European Commission doesn’t impose disproportionate obligations that we, unlike larger platforms, cannot afford. This would create a competitive disadvantage. It seems that the European Commission has taken this into account, although new regulations always cause extra work and research that we prefer to put into the growth of the company. We are now expanding across the EU and for that reason, it is positive if regulations are consistent across EU countries.
Seeking investment is a massive decision for any entrepreneur, one that can completely reshape your business journey.
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Find out the key trends and takeaways we highlighted for the Dutch tech ecosystem from the Atomico State of European Tech 2020 Report.