PURPOSE: to present a targeted approach in order to
respond to questions related to online platforms.
BACKGROUND: in its communication
setting out a strategy for the digital single market, the
Commission committed itself to undertaking a comprehensive
assessment of the role of platforms, including in the sharing
economy, and of online intermediaries.
Online platforms play a key role in
innovation and growth in the Digital Single Market. They have
revolutionised access to information and have connected buyers and
sellers in a better and more efficient way. The growing importance
of the digital economy linked with the diversity and fast changing
nature of platform ecosystems also raise new policy and
regulatory challenges.
A number of globally competitive platforms originated
in Europe, for example Skyscanner and BlaBlaCar.
However, on the whole, the EU currently represents only 4% of
the total market capitalisation of the largest online
platforms: the vast majority of platforms originate in the US and
Asia.
Creating the right framework conditions and the
right environment is essential to retain, grow and foster
the emergence of new online platforms in Europe.
CONTENT: based on the results of a wide-ranging public
consultation, the Commission Communication: (i) outlines the key
issues identified in the assessment of online platforms; (ii)
presents the Commissions position on both the innovation
opportunities and the regulatory challenges presented by online
platforms, and sets out its approach to supporting their further
development in Europe.
This communication underlines the need to adopt policy
and regulatory approaches that respond directly to the challenges,
and which are flexible and future-proof. Where appropriate,
self-regulation and co-regulation can often achieve better
outcomes for enabling the development of strong platform ecosystems
in Europe and can complement or reinforce the existing legislation
that already governs certain activities of online
platforms.
As a general rule, when elaborating responses to
issues related to online platforms, the Commission will take the
following principles into account:
1) A level playing field for comparable digital
services: many online platforms have
challenged conventional business models. Yet these new services are
not subject to the same rules as traditional telecommunications
services.
As a general principle, comparable digital services
should be subject to the same or similar rules, duly
considering opportunities for reducing the scope and extent of
existing regulation. To achieve a level playing field, there may be
a need to simplify, modernise and lighten existing regulation, but
avoid imposing a disproportionate burden on new as well as
traditional business models.
The Commission will apply these principles to the
current reviews of the EU telecoms rules and as part of the
review of the ePrivacy
Directive in 2016, for example when it reviews rules relating
to confidentiality regarding OTT online communications
services.
(2) Responsible behaviour of online
platforms: compared with 2010,
children aged 11 to 16 are now up to 20% more likely to be exposed
to hate messages. Children are also more easily exposed to adult
material online, often with unrestricted access. As of July 2015,
more than 400 hours of video content was uploaded to YouTube every
minute. Rights holders across several content sectors claimed that
their content is used by some online platforms without
authorisation.
The dialogue with IT companies towards a code of
conduct on illegal hate speech online, the EU Internet Forum on
terrorism content and the CEO Coalition to make the internet a
better place for children are important examples of
multi-stakeholder engagement processes aimed at finding common
solutions to voluntarily detect and fight illegal or harmful
material online.
The Commission will maintain the existing
intermediary liability regime. It intends to:
- suggest, in its proposal
for an updated Audio-visual Media Services Directive, that
video sharing platforms put in place measures to protect
minors from harmful content and to protect everyone from
incitement to hatred;
- achieve, in the next copyright package, a
fairer allocation of value generated by the online distribution of
copyright protected content;
- encourage coordinated EU-wide self regulatory
efforts by online platforms;
- explore the need for guidance on the liability of
online platforms when putting in place voluntary, good-faith
measures to fight illegal content online;
- review the need for formal notice-and-action
procedures.
3) Confidence, transparency and
fairness: a 2016 Eurobarometer survey
on online platforms showed that 72% of responding consumers were
concerned about the data collected about them or their activities.
Over 75% of respondents among the general public consider that more
transparency is needed, in particular on how platform remuneration
influences the listing of search engine results, on identification
of the actual supplier of services or products, and on possible
misleading practices including fake reviews.
Commission action will focus on:
- a legislative proposal
revising the Regulation on Consumer Protection Cooperation, to
facilitate more efficient enforcement of EU consumer law in
cross-border situations;
- the review of the guidance on the Unfair
Commercial Practices Directive, an update of existing consumer
protection rules in relation to platforms, and monitoring the
implementation of the principles for comparison
tools ;
- encouraging online platforms to recognise other
electronic identification (eID) means that offer the same
reassurance as their own.
4) Safeguarding a fair and innovation-friendly
business environment: the Commission
will carry out a targeted fact-finding exercise on B2B
practices in the online platforms environment, e.g. (voluntary)
dispute resolution mechanisms, transparency and better information
measures or guidance. In particular, the Commission will engage
closely with stakeholders and public authorities. By spring 2017,
the Commission will determine whether additional EU action is
needed.
5) Keeping markets open and non-discriminatory to
foster a data-driven economy: as part
of the free flow of data initiative scheduled
for the end of 2016, the Commission will consider options for
effective approaches, including technical standards, to facilitate
switching and portability of data among different online platform
and cloud computing services, both for business and private
users.
The Commission considers it important to ensure that
future developments of digital technologies remain open.