Digital Platform Policy Highlights - Digest 15
Summer 2023 Edition: This post outlines how digital platforms adapt their features and policies to comply with new government regulations for the stability and image of their businesses.
This post is part three of a series documenting policy changes and feature improvements introduced by platforms in Summer 2023. A lot of interesting changes related to regulations and lawsuits.
TL;DR → Policy Changes to address external regulations:
Meta and Google block news in Canada over new law
With the Canadian Online News Act (Bill C-18) in place, Meta and Google, two tech giants, have started to phase out the availability of news content for Canadians. Their argument is that this is the violation of the tenets of free internet. Hence, instead of paying news publishers, they would rather end the availability of news content in Canada. These news removal could be a controversial move that may raise awareness on the public’s access to information, sustainability of the industry, and may reveal the power dynamics between tech giants and legislation.(link)
EU’s new law tries to rein in online platforms
The EU’s Digital Services Act (DSA) focus on content moderation, user data protection and restrict illegal content online, such as hate speech. The DSA also imposes rules on targeted advertising, algorithm transparency, and data access. Major tech companies are rushing to comply with the new legislation, as noncompliance can result in hefty fines and eventually, suspension from the bloc. As was the case with the GDPR, the DSA is a showcase of the EU’s regulatory might, and how it is reshaping the internet through its legislation.(link)
Google faces new antitrust charges from European Union
EU alleges that the company has abused its dominant position in the online advertising/search market to favor its own advertising products over those of competitors. A similar case is ongoing in the US involving the Department of Justice. It's intriguing to observe Google's reaction to these outside regulators, especially since advertising is Google’s cash cow. Are they aiming for a settlement, engaging in public relations, lobbying, or assembling a legal defense team to safeguard their profits just like any other lawsuits? (link)
Microsoft stops bundling Teams with Office
While this integration drove Teams’ user adoption, cost, integration, and overall user experience, it seemed like a recipe to anti-trust lawsuits, especially after EU formally opened an antitrust investigation. For instance, Slack, a competitor to Teams, would argue that businesses had little incentive to pay for a separate messaging service with Teams being a part of the widely popular Office Suite. With EU's move to regulate tech companies, whether or not EU’s moves are simply safeguarding the interests of competing businesses, this seems like a smart move by Microsoft.(link)
FTC sues Amazon over Prime subscription deception
The FTC accused Amazon of using “dark patterns” to trick and trap customers into recurring subscriptions and make it difficult for them to unsubscribe. The FTC seeks refunds and penalties for affected customers. FTC cracking down on "dark patterns" (making it easy to pay money or divulge data) is on a rise under Lina Khan. For instance, the agency successfully sued Publishers Clearing House for such dark patterns. FTC’s move against Amazon brings the question to a public debate: When does one consider a tactic to maximize profit a dark pattern?(link)
Meta enables developers to display app install ads in EU, bypassing Google and Apple
Sideloading, once the process of installing apps from third-party sources, has shed its 'side' status. Meta is planning to let developers in the EU to promote apps through Facebook ads as a result of the EU’s new Digital Markets Act, which forces mobile platforms to allow third-party app stores. While this will increase competition and lead to better deals for app developers, it could also lead to security threats. Malicious apps, already an issue in both the App Store and Play Store, could spread more easily within ads. Therefore, there is not a straightforward answer toward whether external installation regulations are more about limiting antitrust cases or revealing potential public threats.(link)
US and EU agree on new data privacy deal
EU and the US thinks differently about freedom of speech, rights, and consumer benefits, hence data privacy has been a long-standing controversial subject. The new privacy deal allows data from Meta, Google and other companies to flow between the U.S. and the E.U. It gives Europeans the right to object when their data is collected by U.S. intelligence agencies and creates an independent review court to hear appeals. Privacy activists and lawmakers may continue to challenge the bill on the grounds that it still does not offer enough protection from US surveillance. Thankfully, the tech giants will not have their platform policies upended, as of now. (link)
Threads remains unavailable in the EU
Threads, Meta’s new social media platform, despite gaining over 100 million users under a year, remains unavailable in the EU, likely due to the Union’s Digital Markets Act. The DMA prohibits “self-preferencing”, preventing Meta from promoting Threads on its other platforms. That makes Threads’ link with Instagram problematic, as Instagram users can (and are urged by the app to) use Threads with the same account. Till Meta is able to resolve the issue, it appears that the tech giant will refrain from making Threads available in Europe.(link)
Research help from Anantesh Mohapatra, writing/structuring help from John Mai (Thanks a ton, folks!)