EU threatens significant fines for unfair online trade practices
QQQ•A European Commission draft law would allow fines of up to 6% of companies’ annual global turnover for unfair digital trade practices. It would ban dark patterns and pay-to-win or pay-to-progress features, while BusinessEurope warned of overlapping requirements and reduced legal certainty.
1. Proposed digital rules
The European Commission’s proposed Digital Fairness Act would allow fines of up to 6% of a company’s annual global revenue for unfair digital trade practices. The draft would need approval from EU countries and the European Parliament before it could become law.
2. Practices targeted
The proposal would ban dark patterns and gambling features such as pay-to-win and pay-to-progress, and require companies to let users turn off addictive designs. It also targets dynamic pricing and subscription traps, and would require influencers to be more transparent about commercial content.
3. Business concerns
BusinessEurope Director General Markus J. Beyrer said the draft risks adding unnecessary obligations and overlapping requirements that undermine legal certainty. A separate proposal to revise the Consumer Protection Cooperation Regulation would empower the Commission to investigate major cases across several EU countries and impose fines of up to 6% of a company’s global annual revenue.
