The governments of France and the Netherlands have expressed their backing for European Union regulations designed to proactively address the practices of major digital platforms – often referred to as “gatekeepers,” “structuring platforms,” or, in more common terms, ‘big tech’ – which possess substantial network effects.

Furthermore, they are advocating for the creation of a unified European authority vested with the power to enforce these regulations, including the capacity to examine the algorithms employed by these platforms.

According to their perspective, any interventions should be implemented on a case-by-case basis, demonstrating adaptability and proportionality. They propose that regulatory bodies should be authorized to “establish customized solutions applicable to a structuring platform.”

The joint position paper also indicates support for obligations requiring platforms to grant access – encompassing data sharing, interoperability provisions, and the proactive presentation of choices to users – as potential measures to foster a more open marketplace. However, it also stresses the importance of thoroughly evaluating the potential benefits and drawbacks before implementing such requirements.

Regarding penalties for violations, the ministers from France and the Netherlands are requesting “sufficiently substantial” fines that would genuinely discourage platforms from non-compliance, preventing them from simply treating these penalties as a predictable business expense.

“The magnitude of these financial penalties or other sanctions must be considerable enough to guarantee the effectiveness of the regulations by deterring platforms from breaching them. The necessity of a robust and preventative sanctioning system is particularly crucial given that any violation of the rules could potentially cause significant and irreparable damage,” they state. 

Concerning enforcement mechanisms, the document requests a single “European body” equipped with “appropriate resources” – including “extensive investigative, auditing, and monitoring capabilities, as well as the ability to audit algorithms” – to oversee the implementation of the new regulations. 

This would represent a significant departure from the EU’s current data protection framework (GDPR), where enforcement responsibilities are distributed among a network of often underfunded local and national data protection authorities. Critics argue that the GDPR’s decentralized enforcement approach has resulted in a pace of action that is too slow to effectively address complex, cross-border cases involving large technology companies. A Commission review of the regulation conducted this summer also revealed a general inconsistency in the vigor of enforcement across different jurisdictions.

This situation serves as a cautionary note for EU legislators as they develop the next generation of digital regulations, highlighting the critical need to prioritize effective enforcement mechanisms.

This report was updated with additional comment