Emma Roth reports via The Verge: The UK could subject big tech companies to hefty fines if they don't comply with new rules meant to promote competition in digital markets. On Thursday, lawmakers passed the Digital Markets, Competition and Consumer Bill (DMCC) through Parliament, which will let regulators enforce rules without the help of the courts. The DMCC also addresses consumer protection issues by banning fake reviews, forcing companies to be more transparent about their subscription contracts, regulating secondary ticket sales, and getting rid of hidden fees. It will also force certain companies to report mergers to the UK's Competition and Markets Authority (CMA). The European Union enacted a similar law, called the Digital Markets Act (DMA). Only the companies the CMA designates as having Strategic Market Status (SMS) have to comply. These SMS companies are described as having "substantial and entrenched market power" and "a position of strategic significance" in the UK. They must have a global revenue of more than 25 billion euros or UK revenue of more than 1 billion euros. The law will also give the CMA the authority to determine whether a company has broken a law, require compliance, and issue a fine -- all without going through the court system. The CMA can fine companies up to 10 percent of the total value of a business's global revenue for violating the new rules.

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An anonymous reader quotes a report from Reuters: Europe's landmark rules on artificial intelligence will enter into force next month after EU countries endorsed on Tuesday a political deal reached in December, setting a potential global benchmark for a technology used in business and everyday life. The European Union's AI Act is more comprehensive than the United States' light-touch voluntary compliance approach while China's approach aims to maintain social stability and state control. The vote by EU countries came two months after EU lawmakers backed the AI legislation drafted by the European Commission in 2021 after making a number of key changes. [...] The AI Act imposes strict transparency obligations on high-risk AI systems while such requirements for general-purpose AI models will be lighter. It restricts governments' use of real-time biometric surveillance in public spaces to cases of certain crimes, prevention of terrorist attacks and searches for people suspected of the most serious crimes. The new legislation will have an impact beyond the 27-country bloc, said Patrick van Eecke at law firm Cooley. "The Act will have global reach. Companies outside the EU who use EU customer data in their AI platforms will need to comply. Other countries and regions are likely to use the AI Act as a blueprint, just as they did with the GDPR," he said, referring to EU privacy rules. While the new legislation will apply in 2026, bans on the use of artificial intelligence in social scoring, predictive policing and untargeted scraping of facial images from the internet or CCTV footage will kick in in six months once the new regulation enters into force. Obligations for general purpose AI models will apply after 12 months and rules for AI systems embedded into regulated products in 36 months. Fines for violations range from $8.2 million or 1.5% of turnover to 35 million euros or 7% of global turnover depending on the type of violations.

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An anonymous reader quotes a report from TechCrunch: Facebook and Instagram are under formal investigation in the European Union over child protection concerns, the Commission announced Thursday. The proceedings follow a raft of requests for information to parent entity Meta since the bloc's online governance regime, the Digital Services Act (DSA), started applying last August. The development could be significant as the formal proceedings unlock additional investigatory powers for EU enforcers, such as the ability to conduct office inspections or apply interim measures. Penalties for any confirmed breaches of the DSA could reach up to 6% of Meta's global annual turnover. Meta's two social networks are designated as very large online platforms (VLOPs) under the DSA. This means the company faces an extra set of rules -- overseen by the EU directly -- requiring it to assess and mitigate systemic risks on Facebook and Instagram, including in areas like minors' mental health. In a briefing with journalists, senior Commission officials said they suspect Meta of failing to properly assess and mitigate risks affecting children. They particularly highlighted concerns about addictive design on its social networks, and what they referred to as a "rabbit hole effect," where a minor watching one video may be pushed to view more similar content as a result of the platforms' algorithmic content recommendation engines. Commission officials gave examples of depression content, or content that promotes an unhealthy body image, as types of content that could have negative impacts on minors' mental health. They are also concerned that the age assurance methods Meta uses may be too easy for kids to circumvent. "One of the underlying questions of all of these grievances is how can we be sure who accesses the service and how effective are the age gates -- particularly for avoiding that underage users access the service," said a senior Commission official briefing press today on background. "This is part of our investigation now to check the effectiveness of the measures that Meta has put in place in this regard as well." In all, the EU suspects Meta of infringing DSA Articles 28, 34, and 35. The Commission will now carry out an in-depth investigation of the two platforms' approach to child protection.

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As reported by Bloomberg (paywalled), Apple's iPadOS will need to abide by EU's DMA rules, as it is now designated as a gatekeeper alongside the Safari web browser, iOS operating system and the App Store. "Apple now has six months to ensure full compliance of iPadOS with the DMA obligations," reads the EU's blog post about the change. Engadget reports: What does Apple have to do to ensure iPadOS compliance? According to the DMA, gatekeepers are prohibited from favoring their own services over rivals and from locking users into the ecosystem. The software must also allow third parties to interoperate with internal services, which is why third-party app stores are becoming a thing on iPhones in Europe. The iPad, presumably, will soon follow suit. In other words, the DMA is lobbing some serious stink bombs into Apple's walled garden. In a statement published by Forbes, Apple said it "will continue to constructively engage with the European Commission" to ensure its designated services comply with the DMA, including iPadOS. "iPadOS constitutes an important gateway on which many companies rely to reach their customers," wrote Margrethe Vestager, Executive Vice-President in charge of competition policy at the European Commission. "Today's decision will ensure that fairness and contestability are preserved also on this platform."

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The European Union has opened a second formal investigation into TikTok under its Digital Services Act (DSA), an online governance and content moderation framework. The investigation centers around TikTok Lite's "Task and Reward" feature that may harm mental health, especially among minors, by promoting addictive behavior. TechCrunch reports: The Commission also said it's minded to impose interim measures that could force the company to suspend access to the TikTok Lite app in the EU while it investigates concerns the app poses mental health risks to users. Although the EU has given TikTok until April 24 to argue against the measure -- meaning the app remains accessible for now. Penalties for confirmed violations of the DSA can reach up to 6% of global annual turnover. So ByeDance, TikTok's parent, could face hefty fines if EU enforcers do end up deciding it has broken the law. The EU's first TikTok probe covers multiple issues including the protection of minors, advertising transparency, data access for researchers, and the risk management of addictive design and harmful content. Hence it said the latest investigation will specifically focus on TikTok Lite, a version of the video sharing platform which launched earlier this month in France and Spain and includes a mechanism that allows users to earn points for doing things like watching or liking videos. Points earned through TikTok Lite can be exchanged for things like Amazon gift vouchers or TikTok's own digital currency for gifting to creators. The Commission is worried this so-called "task and reward" feature could negatively impact the mental health of young users by "stimulating addictive behavior." The EU wrote that the second probe will focus on TikTok's compliance with the DSA obligation to conduct and submit a risk assessment report prior to the launch of the "Task and Reward Lite" program, with a particular focus on negative effects on mental health, including minors' mental health. It also said it will look into measures taken by TikTok to mitigate those risks. In a press release announcing the action, the EU said ByeDance failed to produce a risk assessment about the feature which it had asked to see last week -- when it gave the company 24 hours to produce the document. Since it failed to submit the risk assessment paperwork on April 18 the Commission wrote that it suspects a "prima facie infringement of the DSA."

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The EU's European Data Protection Board oversees its privacy-protecting GDPR policies. Earlier this week, TechCrunch reported that nearly two dozen civil society groups and nonprofits wrote the Board an open letter "urging it not to endorse a strategy used by Meta that they say is intended to bypass the EU's privacy protections for commercial gain." Meta's strategy is sometimes called "Pay or Okay," writes long-time Slashdot reader AmiMoJo : Meta offers users a choice: "consent" to tracking, or pay over €250/year to use its sites without invasive monetization of personal data. Meta prefers the phrase "subsccription for no ads," and told TechCrunch it makes them compliant with EU laws: A raft of complaints have been filed against Meta's implementation of the pay-or-consent tactic since it launched the "no ads" subscription offer last fall. Additionally, in a notable step last month, the European Union opened a formal investigation into Meta's tactic, seeking to find whether it breaches obligations that apply to Facebook and Instagram under the competition-focused Digital Markets Act. That probe remains ongoing. The letter to the Board called for "robust protections that prioritize data subjects' agency and control over their information." And Wednesday the board issued its first decision: "[I]n most cases, it will not be possible for [social media services] to comply with the requirements for valid consent, if they confront users only with a choice between consenting to processing of personal data for behavioural advertising purposes and paying a fee." The EDPB considers that offering only a paid alternative to services which involve the processing of personal data for behavioural advertising purposes should not be the default way forward for controllers. When developing alternatives, large online platforms should consider providing individuals with an 'equivalent alternative' that does not entail the payment of a fee. If controllers do opt to charge a fee for access to the 'equivalent alternative', they should give significant consideration to offering an additional alternative. This free alternative should be without behavioural advertising, e.g. with a form of advertising involving the processing of less or no personal data. EDPB Chair, Anu Talus added: "Controllers should take care at all times to avoid transforming the fundamental right to data protection into a feature that individuals have to pay to enjoy."

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Adult content companies Pornhub, Stripchat and XVideos will have to do risk assessment reports and take measures to address systemic risks linked to their services to comply with new EU online content rules, the European Commission said on Friday. From a report: The three companies were designated as very large online platforms last December under the Digital Services Act (DSA) which requires them to do more to remove illegal and harmful content on their platforms. Pornhub and Stripchat will have to comply with these DSA obligations, among the strictest, on April 21 and XVideos on April 23, the EU executive said. "These specific obligations include submitting risk assessment reports to the Commission, putting in place mitigation measures to address systemic risks linked to the provision of their services," it said in a statement.

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An anonymous reader quotes a report from Reuters: Independent browser companies in the European Union are seeing a spike in users in the first month after EU legislation forced Alphabet's Google, Microsoft and Apple to make it easier for users to switch to rivals, according to data provided to Reuters by six companies. The early results come after the EU's sweeping Digital Markets Act, which aims to remove unfair competition, took effect on March 7, forcing big tech companies to offer mobile users the ability to select from a list of available web browsers from a "choice screen." [...] Cyprus-based Aloha Browser said users in the EU jumped 250% in March -- one of the first companies to give monthly growth numbers since the new regulations came in. Founded in 2016, Aloha, which markets itself as a privacy focused alternative to browsers owned by big tech, has 10 million monthly average users and earns money through paid subscriptions, rather than selling ads by tracking users. "Before, EU was our number four market, right now it's number two," Aloha CEO Andrew Frost Moroz said in an interview. Norway's Vivaldi, Germany's Ecosia and U.S.-based Brave have also seen user numbers rise following the new regulation. U.S.-based DuckDuckGo, which has about 100 million users, and its bigger rival, Norway-based Opera (OPRA.O), opens new tab are also seeing growth in users, but said the choice screen rollout is still not complete. "We are experiencing record user numbers in the EU right now," said Jan Standal, vice president at Opera, which counts over 324 million global users. Under the new EU rules, mobile software makers are required to show a choice screen where users can select a browser, search engine and virtual assistant as they set up their phones. Previously, tech companies such as Apple and Google loaded phones with default settings that included their preferred services, such as the voice assistant Siri for iPhones. Changing these settings required a more complicated process. Apple is now showing up to 11 browsers in addition to Safari in the choice screens curated for each of the 27 countries in the EU, and will update those screens once every year for each country. While DuckDuckGo and Opera are offered in Apple's list, opens new tab in all 27 countries, Aloha is in 26 countries, Ecosia is in 13 and Vivaldi in 8. Google is currently showing browser choices on devices made by the company and said new devices made by other companies running Android operating system will also display choice screen in the coming months. A Google spokesperson said they do not have data on choice screens to share yet.

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