Publication 3 August 2020

Digital platforms: For a real-time and collaborative regulation

AUHTOR

  • Henri Isaac President, Renaissance Numérique

The Digital Services Act (DSA) is expected to update the legal framework for digital services in Europe in early 2021. With this note, and in line with two previous publications, Renaissance Numérique hopes to feed the reflections on the regulation of online platforms.

For a real-time regulation of ad-exchanges

Among the large number of different existing platforms, those that monetise their audience to advertisers (the ad-exchanges) do so through real-time marketplaces on which millions of ad impressions are sold each day to advertisers. Advertisers (e.g. Bing, Facebook, Google, YouTube, etc.) target their users based on data, particularly that provided by the platform on its audiences. The functioning of this market faces multiple criticisms and malfunctions (in particular linked to the nature of advertising content or competition issues) denounced by several stakeholders: advertisers themselves, publishers, users, NGOs and certain regulatory authorities.

In order to guarantee an equitable economic relationship between the various players in the chain and an information and advertising environment that is not toxic for citizens, it would seem desirable to regulate the practices of ad buying and selling. In this respect, Renaissance Numérique recommends the implementation of real-time regulation for these platforms, rather than ex ante or ex post regulation. This could apply to both the economic issues of competition and the issues related to the nature of advertising content.

RECOMMENDATION

Renaissance Numérique recommends the implementation of real-time regulation for ad-exchange platforms, rather than ex ante or ex post regulation. This could apply to both the economic issues of competition and the issues related to the nature of advertising content.

Involving users in the regulation

Some digital platforms have the particularity of offering content that is essentially produced by their users. This is the case of social networks and multimedia content platforms (video, text, music), which are known as “user-generated content” (or UGC) platforms. The issues related to UGC are numerous and require moderation and regulation mechanisms which, until now, have rarely or hardly included users (even though they are the main source of content production). 

For these platforms, Renaissance Numérique recommends formalising the participation of users in the regulation at two levels: 

  • in the regulatory bodies themselves: either via the integration of a college of users within the independent administrative authorities (which, for the most part, only have a college of experts) or via the modification of the composition of these colleges by introducing a share of users;
  • and in the governance of platforms.

With regard to the integration of users in the governance of platforms, Renaissance Numérique proposes several avenues depending on the nature of the platforms in question: UGC platforms and labour intermediation platforms.

For UGC platforms, the role of a user-representative body should focus on several elements: the definition of moderation rules and their evolution, the definition of a collaborative platform-specific approach to moderation, and the development of a moderation culture specific to each platform.

Regarding labour intermediation platforms, regulation should focus on those platforms that intermediate a permanent and regular activity. Non-professional and temporary activities might also need to be regulated, by implementing a cap, to prevent these from becoming primary activities.


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