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EU Commission Fines Apple for music streaming rules

The EU Commission fined Apple over €1.8 billion for abusing its dominant position in the distribution of music streaming apps to iOS users through its App Store. Apple's restrictions on app developers, which prevented them from informing users about alternative, cheaper music subscription services, were deemed illegal under EU antitrust rules. This lack of consumer choice and comparison led to increased prices and violated the Treaty on the Functioning of the European Union.

On May 16, 2024, the European Commission initiated an investigation into META, Facebook and Instagram's parent company, for potential violations of the Digital Services Act (DSA) regarding minor protection. The investigation focuses on concerns about META's systems fostering addictive behaviors in children, the effectiveness of its age-verification tools, and the adequacy of its privacy, safety, and security measures for minors.

The European Consumer Organisation (BEUC) has lodged a complaint against Chinese e-commerce giant Temu for breaching the EU’s Digital Services Act. Alleged breaches include insufficient traceability of traders, manipulative practices such as "dark patterns" to lure consumers into spending more, and lack of transparency in product recommendations. Similar complaints have been filed by 17 of BEUC's members with their respective national authorities.

The European Data Protection Board (EDPB) issued an opinion on the "Pay or Okay" subscription model by Instagram and Facebook, emphasizing that personal data should not be a tradable commodity. The EDPB criticized the binary choice of the model and recommended an 'equivalent alternative' for users, such as a free account with less or no personal data processing for advertising. The EDPB stated that existing'pay or ok' models could only be valid if they comply with all requirements for consent, including free consent, clear information, and avoidance of dark patterns. The board concluded that most large online platforms would not be able to comply with these requirements.

Commission influencer social media “sweep” investigation

The EU Commission and consumer protection authorities screened social media posts from 576 influencers to verify compliance with EU consumer law regarding advertising disclosure. Findings revealed that while 97% posted commercial content, only 20% consistently disclosed it as advertising. Other findings included 30% of influencers not providing any company details on their posts, and 38% not using platform labels that serve to disclose commercial content. The sweep resulted in 358 influencers being earmarked for further investigation. The Commission will also analyze the results of the sweep in light of the legal obligations of the platforms under the Digital Services Act (DSA) and take necessary enforcement action where appropriate.

The Artificial Intelligence Act, one of the world's first binding pieces of legislation on AI, focuses on ethical use, prohibiting the use of dark patterns within AI systems. It aims to ensure AI systems do not exploit user vulnerabilities, balancing technological innovation and consumer protection. The final text was recently approved by the EU Council and awaits signature.

EU Commission DSA proceedings against TikTok

The European Commission has initiated formal proceedings against TikTok to assess potential breaches of the Digital Services Act (DSA). The investigation focuses on areas such as the protection of minors, advertising transparency, data access for researchers, and risk management of addictive design and harmful content. Specifically, TikTok's compliance with DSA obligations related to the assessment and mitigation of negative effects from its system design, including algorithmic systems that may stimulate behavioral addictions, is being examined. The investigation also includes an evaluation of TikTok's age verification tools and their effectiveness in preventing access by minors to inappropriate content. Additionally, the Commission is assessing whether TikTok has implemented appropriate measures to ensure privacy, safety, and security for minors, particularly in relation to default privacy settings.

EU investigation into X (formerly Twitter) for dark patterns

European Commission Launches Digital Services Act Investigation Against X (formerly Twitter) The European Commission has kicked off a formal investigation under the Digital Services Act (DSA) against X. This probe covers various grounds, including risk management, content moderation, dark patterns, advertising transparency, and data access for researchers. Specifically focusing on dark patterns: 1. Information Manipulation Check: The Commission is looking into whether X's “Community Notes” system effectively combats information manipulation in the EU, especially in safeguarding civic discourse and electoral processes. 2. Transparency in Question: The investigation questions the transparency measures taken by X, highlighting potential shortcomings in providing researchers access to public data and concerns with X's ads repository. 3. Deceptive Design Alert: Suspicions about a deceptive design in X's user interface, particularly related to Blue checks on subscription products, are under scrutiny. This marks the first formal action by the Commission to enforce the DSA, a mere three years after its proposal, indicating a swift move towards ensuring online platforms operate responsibly. Stay tuned for updates on this evolving investigation.

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