Europe's largest broadcasting and media organizations have cautioned European Union regulators that a proposed legislative measure aimed at addressing unfair digital practices should be directed at major technology firms, rather than at publishers and broadcasters, which are already subject to extensive regulation, as this poses potential threats to media business models and diversity.
The position underscores apprehension about major online platforms venturing into markets that have historically been pivotal to the financial success of media organizations.
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The Digital Fairness Act, slated to be proposed by the European Commission's Justice Chief, Michael McGrath, at year's end, aims to address issues such as deceptive design elements, commonly referred to as dark patterns, in digital products.
It also targets addictive product designs, fraudulent influencer advertising, manipulative pricing strategies, and subscription schemes that trap consumers, among various other concerns.
The Association of Commercial Television and Video on Demand Services in Europe (ACT), whose membership comprises Canal+, RTL, Mediaset, ITV, Paramount+, NBCUniversal, Walt Disney, Warner Bros Discovery, Sky, and TF1 Groupe, conveyed to McGrath and EU technology chief Henna Virkkunen that the Digital Finance Act's universal strategy could be detrimental to the media industry.
They cautioned that this strategy might disproportionately affect sectors that are considered low-risk yet sensitive to democratic processes.
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In an April 21st correspondence addressed to McGrath and Virkkunen, the Act expressed concern that it might impose identical obligations on "structurally distinct entities without adequately differentiating based on factors such as risk, function, or market power.
The letter's endorsers encompass the Association of European Radios, the global streaming consortium known as Beyond Mainstream, the European Magazine Media Association, the European Publishers Council, the European VOD Coalition, and the Motion Picture Association EMEA.
The organizations stated that specific design elements commonly deemed problematic—such as autoplay, recommendation algorithms, and personalized advertising—are not intrinsically harmful and, in fact, serve as crucial revenue sources for the media and creative sectors.
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They stated that the DFA ought to adopt a balanced and evidence-driven methodology to avoid causing disruption to business frameworks that enhance media diversity, journalism, and creative content.