Regulatory News In 2024, several new regulations could impact digital marketplaces:
• Digital Markets Act (DMA): This EU legislation designates large online platforms as "digital gatekeepers" based on their size and market impact. These gatekeepers, including companies like Alphabet, Amazon, and Meta, must adhere to rules ensuring fair competition, such as prohibiting unfair practices and ensuring data access and portability. The DMA also empowers the European Commission to investigate and impose fines for non-compliance. • California Privacy Protection Agency (CPPA) Regulations: In the US, the CPPA drafted new regulations for automated decision-making technology (ADMT) under the California Consumer Privacy Act (CCPA). These regulations require businesses to notify consumers about the use of ADMT and allow them to opt- out of certain automated decision-making processes. • OECD Reporting Rules: From January 1, 2024, OECD rules mandate online marketplaces to report details and income of sellers, aiming to enhance transparency and tax compliance. This includes collecting information about sellers' transactions and reporting them annually. • Cybersecurity and Privacy: US federal and state laws continue to evolve, requiring digital marketplaces to implement robust cybersecurity measures. This includes adhering to the "reasonable security" standard and complying with specific regulations like the Gramm-Leach-Bliley Act for financial institutions and HIPAA for healthcare entities. • SEC AI Rules: The US Securities and Exchange Commission (SEC) has proposed new rules addressing conflicts of interest related to the use of AI by broker-dealers and investment advisers. These rules, expected to be finalized in 2024, aim to ensure transparency and fairness in AI-driven financial services. These regulations reflect a global trend towards tighter controls on digital marketplaces, aiming to enhance competition, transparency, and consumer protection. Source:Skadden,ICLG, Android Central,ICAEW2024
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