Opinion Factsheet 

The Digital Services Act and the Digital Markets Act

BGCSDADEELENESETFIFRGAHRHUITLTLVMTNLPLPTROSKSLSV
Opinion Number: CDR 5356/2020
Rapporteur: KRATSA Rodi
Commission: ECON
Status: Adopted
Date: 30/06/2021
 
It is crucial for the CoR to continue highlighting the role and concerns of LRAs with regards to the Digital Services package, as well as to further strengthen its inter-institutional presence in the ensuing debate.
The opinion emphasises the strong local and regional dimension of the DSA and DMA proposals. Digital services influence citizens' everyday life and some of the sectors in which certain platforms are active, such as housing and tourist accommodation, urban transport and delivery of public services, are regulated at local and regional level; need to push for a regulatory approach which enables innovation, competitiveness and fair competition.
At its Plenary Session of 30 June/1 July 2021, the European Committee of the Regions (CoR) adopted an opinion on The Digital Services Act and the Digital Markets Act. Rodi Kratsa (EL/EPP), Governor of the Ionian islands, was rapporteur for this opinion.

This opinion is embedded into a broader net of initiatives aimed at sharpening the CoR's profile as one of the EU's drivers of an inclusive digital transformation. Building on previous CoR opinions on the platform economy, it especially highlights the concerns of local and regional authorities related to digital services which influence citizens' everyday life in some of the sectors where platforms are active, such as housing and tourist accommodation, urban transport and delivery of public services. In addition, the opinion expresses the need to overcome the 'double digital divide', caused by the unequal distribution of the prerequisites needed to reap the potential social and economic benefits from digitalisation: access to high-capacity networks and digital literacy. To counteract territorial and social disparities and to ensure digital cohesion, the opinion thus calls for capacity-building at the local level.

Based on the exploitation of existing networks with relevant stakeholders, including MEP Andreas Schwab, rapporteur on the Digital Markets Act in the European Parliament, the opinion on the Digital Services Act and the Digital Markets Act has had a strong impact on interinstitutional debates on these legislative acts and the concerns of local and regional authorities were included in the final legislative texts. Around 30 points of Rapporteur Kratsa's opinion were taken up in the reports by the European Parliament. 11 of these points were included in the final texts (both DSA and DMA taken together) following agreement among the co-legislators. These points cover the explicit mention of online platforms for accommodation services and of the potential risk of unfair business practices by web browsers and virtual assistants.
THE EUROPEAN COMMITTEE OF THE REGIONS



- notes the strong local and regional dimension of the DSA and DMA proposals. Digital services influence citizens' everyday life and some of the sectors in which certain platforms are active, such as housing and tourist accommodation, urban transport and delivery of public services, are regulated at local and regional level; emphasises here the need for a regulatory approach which enables innovation, Europe's competitiveness and fair competition;

- notes that many smaller players depend on established online platform ecosystems for business transactions and that the COVID-19 pandemic has further increased the dependency of smaller businesses reliant on established online platform ecosystems to reach out to business users and consumers; highlights the importance of the proposed regulations for the local economy, as SMEs and start-ups will benefit from harmonised rules. The regulations form a framework within which SMEs can scale up within the Single Market;

- acknowledges the importance of data sharing for effective enforcement at national and subnational level and points out that access to data is a crucial issue for public authorities, particularly at local and regional level; it is impossible to enforce applicable rules and safeguard control mechanisms without access to the relevant data from platforms operating in a given territory; recalls the CoR's recent position which held that inconsistent approaches lead to further fragmentation and should be avoided;

- takes the view that a "double digital divide" due to a lack of infrastructure and IT literacy and skills must be prevented. Where the COVID-19 pandemic has exacerbated disparities, there is an urgent need to support capacity-building for citizens and businesses, particularly traditional SMEs, start-ups and the public sector.

Importance

High
Medium
Low
 

DSA enters into force

 
16 Nov
 

DMA enters into force

 
01 Nov
 

DSA adopted in Council

 
04 Oct
 

Stakeholder Meeting with MEP Andreas Schwab

On 18 March 2021, Governor Kratsa and team met with MEP Andreas Schwab, Rapporteur for the Digital Markets Act in the IMCO Committee of the European Parliament, to exchange views on the Digital Markets Act. Key points of discussion included:
• Which elements does he see as the most important ones for the regions and local authorites?
• On which points is there most debate in the IMCO committee?

 
18 Mar
 

Stakeholder meeting with the European Commission

On 12 March 2021, Governor Kratsa discussed the DSA and DMA proposals with
Mr Denis Sparas, Legal and Policy Officer, Digital Services and Platforms (CNECT.F.2) and Mr Gunnar Wolf, Case handler, Antitrust case support and policy (COMP.A.1). The meeting served to raise some points from the local and regional perspective and to gather the COM views on these. Governor Kratsa highlighted digital cohesion as an essential additional dimension of the traditional concept of economic, social and territorial cohesion enshrined in the EU Treaty.

 
12 Mar
 

Stakeholder meeting with Peter Florianschütz (AT/PES)

On 12 March 2021, Governor Kratsa met with the rapporteur of the 2019 CoR opinion on the collaborative economy, Peter Florianschütz. He was joined by representatives of the city of Vienna. The exchange of views served to identify areas that remain to be addressed in the DSA and DMA regulations, in particular concerning local accommodation challenges, access to platform data and enforcement across the EU.

 
12 Mar
 

Stakeholder meeting with the Allied for Startups association

On 12 March 2021, the team of Governor Kratsa met with Benedikt Blomeyer and Dan Dalton of the Allied for Startups association. The meeting served to discuss the scope provided for innovation, competition and potential scaling-up of operations within the Single Market in the draft DSA and DMA regulations.

 
12 Mar
 

Stakeholder meeting

On 18 March 2021, Governor Kratsa's team met with representatives from the City of Prague and the City Alliance to discuss concrete implications of the Digital Services Act and Digital Markets Act proposals for cities in Europe.

 
08 Mar
 

Written stakeholder consultation

The CoR ran a written stakeholder consultation among its networks and Members in February/March 2021, which showed that key issues for local and regional authorities in this field are access to data, the need for legal certainty, the responsibility of platforms, and the particular impact of accommodation platforms on local housing challenges. An alliance regrouping 22 cities in Europe also responded to the consultation, and its input was taken on board in the framing of the opinion.

 
23 Feb
Share :
 
Back to top