The members of the Committee on the Internal Market and Consumer Protection (IMCO) have an exchange of views with Margrethe VESTAGER, Executive Vice President of the European Commission for a Europe Fit for the Digital Age. Presentation of the proposals for Digital Services Act and Digital Markets Act and structured dialogue. Presentation of the proposals for Digital Services Act and Digital Markets Act: opening statements by Anna CAVAZZINI (Greens/EFA,DE), IMCO Chairand by Margrethe VESTAGER, Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition. This transcription speech is the result of an automatic process. Check against delivery.

IMCO Committee - Exchange of views with Margrethe VESTAGER, Executive Vice President of the EC, on the Presentation of the proposals for Digital Services Act and Digital Markets Act: Opening statements

SOUNDBITE (Original), Anna CAVAZZINI (Greens/EFA,DE), IMCO Chair, Good morning, dear colleagues, I suggest that we start we are still having a minor technical problems with four of the languages, but it will be solved any time soon. Nevertheless, I suggest that we start already because we have a very full timetable. As usual, we are going to have a very interesting exchange of views with executive vice president Margarethe Vestager on the two big digital legislative proposals by the Commission, the DSA and the DMA. I'm very happy that Margarethe Vestager is today here with us.

SOUNDBITE (Original), Anna CAVAZZINI (Greens/EFA,DE), IMCO Chair, As you recall, we had already an exchange of views with her in November, but of course, then the two proposals were not out yet. So, yeah, we are very much looking forward to this exchange of views with you. I would like to give you the floor now for an opening statement of 10 minutes. And afterwards we have two rounds of questions and remarks by the members.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, Thank you very much, honourable chair, honourable members, thank you very much for the invitation to exchange views with you today on the two proposals Digital Markets ACt and Digital Services Act, as I as I hope you see, they they together form the basis of a major reform of our digital space. I would like again to thank the Internal Market Committee and rapporteur Mr. Saliba for the excellent pre legislative work that was done.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, I hope that you see how that has inspired us in in different parts of the proposal, the recent pandemic and the lockdown that we are all still suffering from. I think has illustrated both the benefits, but indeed also the challenges when it comes to digital services. These challenges are real. We saw that in the attempted coup at the Capitol Hill. And the challenges are many, such as the spread of hate speech, disinformation, attempts to manipulate elections, sales of dangerous products or things that are basically just fake products on fair market access for small players.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, So it's it's basically all in our societies. Our democracy, our economy, where we see that there are things that needs to be dealt with. And to tackle all these issues. Well, what we propose to you is to design a single ambitious European rulebook, Parliament and Council. Our aim is is very clear. We want to create a fair, open, competitive digital space, a digital space that will ensure equal and better protection for consumers across the union while allowing or enabling innovative companies to scale up and grow in the single market.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, And that, of course, will also contribute to the recovery and the rebuilding of our societies and the green and digital transition. So when we when we started designing these proposals and let me start with the Digital Services Act, we would want to intervene, where it is necessary and justified. So we have been trying to use a sort of balancing text test all the way. And this is why we have carefully preserved what works in the e-commerce directive. First, the country of origin principle that remains at the very heart of our internal market, the Interservices Act.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, Well, here we propose measures that aims at safeguarding this very important principle. Second, the conditional liability exemption for intermediary services that has also been one of the building blocks of the digital economy that we also seek to clarify that there is a fundamental distinction between these services when they move away from a pure sort of posting role and become more than pure intermediaries and take upon themselves a more commercial role in the transaction.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, Last but not least from the eCommerce Directive, the prohibition of general monitoring, we see that as a fundamental principle when it comes to the freedom of expression in the digital space. And because of that, we would want to maintain it. On the other hand, we are correcting an important shortcoming in the current system, we propose to put in place a framework of graduates that sort of due diligence applications, obligations applying asymmetrically according to the size, the nature and the reach of online services.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, For online platforms we would establish obligation for platforms to fight illegal content while empowering users to contest the removal of legal content. Second, rules on the traceability of online sellers so that rogue traders can be prevented from selling dangerous or counterfeit products or services in the single market. Third, transparency obligations on advertising and algorithms so that we can understand and influence how the decision of platforms actually do affects our lives and form our own opinions.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, As for the largest platforms, we also require them to analyse and manage the risk that their services pose to our society. They will be also subject to annual audits as well as scrutiny by researchers. Finally, our rules will be effective and make sense, of course, only if they are properly enforced. We therefore proposed, I think, quite innovative, but hopefully also a robust enforcement framework.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, We propose the creation of an integrated system in Europe, of cooperation between the authorities, of the countries of establishment and those countries where the platforms provide their services. And this will improve the enforcement of the Digital Services Act itself, but also of existing national and union laws, I think often seen or experienced at not being sufficiently enforced today. Then a few words on the Digital Markets Act.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, First, for me, there is a very clear distinction between the two proposals, the Digital Market Act targets the large platforms that act as gateways to customers, the Digital Services Act addresses primarily societal risks posed by systemic platforms. When you look at as a platform, well, they should be at a fair and open environment for businesses that depend upon them on their access to customers, and that is the point of the Digital Markets Act. And of course, also digital platforms they should be challenged by newcomers.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, What we have experienced the last 10 years should only be the first chapter of digitisation that should be much more to come instead of the gatekeepers getting a more and more entrenched position. As you know, in the past, we have used our competition tools, law enforcement, to solve a number of the problems posed by digital gatekeepers. And here, of course, we are also proven that dominant position in the marketplace.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, And while competition law enforcement is an important and effective tool in tackling some of the problems, I think it has become quite clear, at least for us, that competition law enforcement, in a case by case manner, which is the nature of competition law enforcement, cannot address all systemic problems raised by digital platforms. Competition law enforcement has to be complemented with extensive regulation to be able to tackle recurring behaviours across all companies who have a gatekeeping role.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, Also, digital markets, they are prone to tipping. And we know that in such cases it's better to prevent than having to curate. When we left a cure, there is a high risk that the harm is already done and this means that small and medium sized businesses, innovators, they can be weakened, they could be prevented from growing and scaling up, and they may even be driven out of the market.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, The DMA is built on the knowledge that we have acquired by competition law enforcement and in-depth market research, of course, as well. And it will continue to do so. Because with the DMA we also propose a comprehensive tool to act quickly and with legal certainty for gatekeepers, and this is a major paradigm shift. As you know, the Markets Act contains criteria to identify undertakings acting as gatekeepers for one or more core platform services, all of whom, once they have been designated by a commission decision, will have to comply with a number of well-defined obligations and prohibitions.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, Obligations and prohibitions, they will cover many issues, like the combination of personal data, the use of data, data portability, fair access condition to core platform services or preferences, as well as obligations to report on acquisitions and to audit use of profiling practises. A very important point, I know, for the Parliament.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, Let me finish, though, with a common point between the two proposed regulations. We foresee a system of proportionate, progressive but dissuasive penalties ranging from substantial fines, 6 percent of annual turnover in the DSA, 10 percent in the DMA to temporary suspension of platform services, but also under the Digital Markets Act, as well as a last resort, the possibility of structural separation remedies.

SOUNDBITE (Original), Margrethe VESTAGER,  Executive Vice-President of the European Commission in charge of Europe fit for the Digital Age, and Commissioner for Competition, To conclude, I think I think that you share my sense of urgency. What we have seen during the pandemic, I think underlines this urgency. To use a metaphor, it's like a wake up call with no snooze function. And and I do hope that you will engage fully for a swift adoption of the two proposals. I think it is really timely. And with a swift adoption of these rules, we will offer benefits to Europeans, consumers and businesses. And of course, I see this exchange very much as a part of that process. So I've been looking very much forward to this and I'm looking very much forward to your comments. Thank you very much.

SOUNDBITE (Original), Anna CAVAZZINI (Greens/EFA,DE), IMCO Chair, Thank you so much, executive vice president, for presenting again the ideas and the proposals here in the committee. And thanks also for referring to the important role of our own initiative reports that we had voted last year when it comes to drafting to the two proposals.

IMCO Committee - Exchange of views with Margrethe VESTAGER, Executive Vice President of the EC, on the Presentation of the proposals for Digital Services Act and Digital Markets Act: Opening statements

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