Legislation

Belgium – European Lotteries welcomes European Parliament position on digital services

By Phil - 24 January 2022

European Lotteries, the lottery association encompassing 70 members in all EU states, has welcomed the European Parliament’s negotiating position on the Digital Services Act (DSA) with 530 votes to 78, and 80 abstentions.

Arjan van ‘t Veer, Secretary General said: ”EL Members strongly believe in a high level of consumer protection and are fully committed to the fight against illegal online gambling. The DSA foresees a number of new provisions that could be beneficial to this end. EL hopes that these will be at the disposal of its Members, most notably an improved notice-and-action mechanism, the concept of trusted flaggers and enhanced consumer protection and know-your-business-customer requirements.

The DSA is a future EU regulation with the aim to create a safer digital space in which users’ rights are protected through rules to tackle illegal products, services or content online; enhance the accountability and transparency of algorithms; and deal with content moderation. Following the release of the proposal by the European Commission in December 2020, Member States in the Council adopted their general approach last November. EL urged the Council ahead of its meeting to exclude the explicit mention of online gambling and betting services from DSA.

The tweaks introduced by the Parliament include a more transparent and informed choice for the recipients of digital services; prohibition of targeting or amplification techniques involving the data of minors for the purpose of displaying ads, as well as targeting individuals on the basis of special categories of data which allow for targeting vulnerable groups. Also, 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.

Mr van ‘t Veer said: “”Today EL welcomes the support by MEPs, in particular by Rapporteur Christel Schaldemose to improve the European Commission’s proposal to create a safer digital space for everyone. This marks a milestone update in the regulation of Internet in the EU.”

With the European Parliament now having reached its position, the path is paved towards the so-called ”trilogues”’- negotiations between all the three institutions which will see the final text of the future regulation hammered out. DSA rules could come into force as soon as 2023. EL will continue to closely monitor and – as appropriate – get actively involved in this discussion in the best interest of its Members.

The text approved today by Parliament with 530 votes to 78, with 80 abstentions, will be used as the mandate to negotiate with the French presidency of the Council, representing member states.

After the vote, Christel Schaldemose (S&D, DK), who is leading the Parliament’s negotiating team, said: “Today’s vote shows MEPs and EU citizens want an ambitious digital regulation fit for the future. Much has changed in the 20 years since we adopted the e-commerce directive. Online platforms have become increasingly important in our daily life, bringing new opportunities, but also new risks. It is our duty to make sure that what is illegal offline is illegal online. We need to ensure that we put in place digital rules to the benefit of consumers and citizens. Now we can enter into negotiations with the Council, and I believe we will be able to deliver on these issues.”

The Digital Services Act (DSA) proposal defines clear responsibilities and accountability for providers of intermediary services, and in particular online platforms, such as social media and marketplaces.

The DSA establishes a ‘notice and action’ mechanism, as well as safeguards, for the removal of illegal products, services or content online. Providers of hosting services should act on receipt of such a notice ‘without undue delay, taking into account the type of illegal content that is being notified and the urgency of taking action.’ MEPs also included stronger safeguards to ensure notices are processed in a non-arbitrary and non-discriminatory manner and with respect for fundamental rights, including the freedom of expression.

Online marketplaces must ensure that consumers can purchase safe products online, MEPs say, strengthening the obligation to trace traders (the “Know Your Business Customer” principle).

Very large online platforms (VLOPs) will be subject to specific obligations due to the particular risks they pose regarding the dissemination of both illegal and harmful content. The DSA would help to tackle harmful content (which might not be illegal) and the spread of disinformation by including provisions on mandatory risk assessments, risk mitigation measures, independent audits and the transparency of so-called “recommender systems” (algorithms that determine what users see).

Parliament introduced several changes to the Commission proposal, including on:

• exempting micro and small enterprises from certain DSA obligations;

• targeted advertising: the text provides for more transparent and informed choice for the recipients of digital services, including information on how their data will be monetised. Refusing consent shall be no more difficult or time-consuming to the recipient than giving consent. If their consent is refused or withdrawn, recipients shall be given other options to access the online platform, including “options based on tracking-free advertising”;

• targeting or amplification techniques involving the data of minors for the purpose of displaying ads will be prohibited, as well as targeting individuals on the basis of special categories of data which allow for targeting vulnerable groups;

• compensation: 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;

• online platforms should be prohibited from using deceiving or nudging techniques to influence users’ behaviour through “dark patterns”;

• more choice on algorithm-based ranking: VLOPs should provide at least one recommender system that is not based on profiling.