CIDOB Opinion 685 highlights the ongoing debate regarding the regulation of digital power, particularly focusing on the actions of large tech companies such as Lina Khan's appointment as the Federal Trade Commission president in the US and Margrethe Vestager's role as the European Commissioner for Competition. Both figures are known for their critical stance towards tech giants and advocating for stricter regulations.
The European Union's recent push towards digital regulation, encapsulated in the Digital Services Act (DSA) and the Digital Markets Act (DMA), represents a significant shift in the approach to market power in the digital world. The DSA aims to control digital service providers, particularly large platforms, through outlining obligations of conduct, while the DMA focuses on mitigating the provision of digital services. Both acts await approval from the European Parliament and the EU Council of Ministers.
The DSA's principles align with the European approach to digital environments, emphasizing the principle of the country of origin, which allows platforms to adhere only to the laws of the member states where they are established. This has facilitated the expansion of cross-border digital services across Europe, benefiting citizens and tourists alike. However, it also reveals vulnerabilities, as the system may allow for a lack of regulatory control, making it challenging to identify infringements of administrative rules related to areas such as urban planning and tourism.
A key concern raised by European cities is the inability to manage the full scale of digital tourist activity, impacting the protection of public spaces, neighborhood coexistence, and the balance of housing and retail offerings for residents. The DSA introduces mechanisms for scrutinizing unlawful activities online, aiming to enhance the accountability of large platforms through risk identification, mitigation, auditing, and cross-border coordination. However, these mechanisms lack enforceability and clear deadlines, and face challenges in coordination when online intermediaries are non-compliant.
Additionally, the DSA's status as a horizontal regulatory tool, intended to cover various aspects of digital services including online trade and social networks, poses challenges in enforcing effective supervision. The absence of a clear legal basis for removing illegal content at the European level, despite demands from European cities, illustrates the complexity in balancing security, lawfulness, and freedom in the digital realm.
In summary, the DSA presents both opportunities and challenges in regulating digital services, particularly in the context of tourism, aiming to address the issues of market power and digital oversight while navigating the complexities of cross-border regulation and the balance between security, freedom, and efficiency.