digital economy regulation

The revised Consumer Protection Cooperation Regulation would empower the Commission to enforce the Digital Fairness Act in cases affecting consumers in at least two thirds of EU countries accounting for two thirds of the EU population. It could impose fines of up to 6% of the trader’s global annual turnover. However, these new enforcement powers will not apply to the existing EU consumer acquis, which would remain subject to enforcement by national authorities.

This edition features, among others, the Commission’s proposals on the Digital Fairness Act and the revision of the Consumer Protection Cooperation Regulation; the European Parliament (EP) co-rapporteurs’ draft report on the Cloud and AI Development Act; an EU event and EP plenary debate addressing high-risk suppliers under the proposed Cybersecurity Act 2; a first exchange of views in the EP on the EU Kids Act; and a Cullen International report about online games under the same proposal. It also lists events taking place this week.

The European Commission proposed a Digital Fairness Act in the form of a regulation. The proposal would repeal and replace the Unfair Commercial Practices Directive, while adding a new chapter with specific rules on digital fairness, including new safeguards for traders making automated systems available to consumers to conclude or perform contracts on their behalf.

During a European Parliament (EP) plenary debate, the Commission stressed the need for immediate action to de-risk 5G networks from high-risk suppliers (HRS). Several members of the EP (MEPs) called for stronger protection of critical infrastructure, outlining different priorities such as the rapid adoption of the Cybersecurity Act 2 (CSA2), delivering sovereign European cloud services, and investing to reduce dependencies on major AI providers.

The proposal would establish a horizontal framework prohibiting “manipulative marketing tactics” (i.e. dark patterns), as well as certain advertising and price personalisation practices. In addition, traders would have to enable consumers to turn off addictive design features and facilitate the cancellation of digital subscriptions. The proposal is part of a broader legislative package that would also vest the Commission with direct enforcement powers in the field of consumer protection law.

Regarding a potential deadline for mobile operators to phase out equipment from high-risk suppliers, the advisor to the European Parliament rapporteur stressed the urgency of taking action, arguing that concerns over implementation timelines should be secondary.