BMag Signal · In 30 seconds
Critical readWhat happened. The European Commission has published a proposal that threatens digital companies with significant fines if found guilty of deceptive or manipulative market practices. This is the latest step by the Commission towards the 'Digital Markets Act' (DMA), a series of rules designed to reduce competition in the sector of large digital companies such as Google, Amazon, and Facebook.
A vast array of regulatory European regulation for digital companiesThe Commission has declared that companies using ambiguous or manipulative commercial strategies may be subjected to significant fines. The document specifies that companies violating the 'dark patterns' models, which are visible design elements on websites guiding users to purchase products or services, may face fines of up to 6% of their annual revenue. Additionally, it is anticipated that companies using personalized offer targeting technologies or vulnerable client targeting technologies may face similar fines.
The document also stipulates that companies using dynamic pricing strategies based on real-time changes should be more honest about the prices offered. Furthermore, companies engaging in additional behaviors that can lead to compulsive or excessive consumer acquisition should provide additional information regarding the quantity of products available at the price offered. So far, this document has not received support from all European countries, but the Commission is working with national governments and the European Parliament to make it law.
Authorities have stated that the DMA is the final phase of their online consumer protection policy and its main goal is to ensure a balanced competitive environment in the sector of large digital companies. Authorities have noted that the DMA does not sufficiently protect online investors, but they have acknowledged that the document contains some positive measures, such as those concerning the 'dark patterns' models. Despite this, many consumer defense groups have remained against the document, accusing the Commission of not reaching sufficient levels of consumer protection.
In conclusion, while this proposal of legislation represents a step forward towards stricter regulations against large digital companies, many experts criticize the document for being insufficiently severe with deceptive or manipulative commercial practices.
The news that matters, every morning.
Ricevi una selezione ragionata di business, mercati e innovazione.