The future of platform regulation: For a more scalable and innovative Europe

Executive summary 

Platforms play a crucial role in the EU’s digital economy, with their growth trajectory continuing to accelerate. As the EU solidifies its position as a global leader in platform regulation through landmark legislation such as the Digital Services Act (DSA), Digital Markets Act (DMA) and Platform-to-Business Regulation, it is essential to ensure that these frameworks not only promote user safety and fair competition, but also foster a scalable and innovative European market. 

We suggest four key priorities for the upcoming European Commission to enhance the efficacy of platform regulation: 

• Reinforcing the single market: Divergent national rules and interpretations will continue to inhibit scale, particularly for European platforms. The Commission should issue practical guidance to ensure consistent application of the DSA and DMA across Member States. This will prevent fragmentation and ensure that platforms can actually operate within a single regulatory environment. 

• Effective enforcement: The success of the DSA and DMA hinges on proportionate, evidence-based enforcement. The Commission must be well-resourced to supervise platforms, investigate complaints, and maintain a fair competitive environment. Regular engagement with stakeholders and clear, consistent guidelines will ensure that enforcement is both impartial and effective. 

• Simplification: As the new legislative term begins, the Commission should focus on simplifying the regulatory framework to reduce unnecessary complexity. By streamlining overlapping regulations, such as those related to disinformation and deepfakes, and harmonising rules across Member States, the Commission can create a more navigable and scalable EU market. 

• Key areas for EU action: The EU should establish harmonised standards for online protection of minors, focusing on age verification for relevant services and consistent regulations across Member States to prevent fragmentation. Supporting the DSA’s trusted flagger regime, simplifying regulations to maintain consumer trust, and ensuring uniform application of audiovisual service rules are crucial for fostering a safe, competitive and innovative digital environment. 

By focusing on these priorities, the EU can balance safety, competition and innovation, ensuring that platforms continue to drive economic growth in Europe.