EU Commissioner Hearings

McGrath's Vision for the Digital Fairness Act

• Not Encroaching on Existing Laws: McGrath Emphasised that the DFA will not duplicate existing legislation but will address specific areas lacking consumer protection in the digital realm.

• Targeted Issues: The Act will tackle dark patterns, misleading marketing by social media influencers, addictive design of digital products, and unfair personalization practices.

• Protection of Minors: A significant focus will be on safeguarding children from harmful content and manipulative practices online.

• Digital Subscriptions: McGrath acknowledged concerns about the difficulty of cancelling digital subscriptions compared to signing up, committing to address this imbalance.

Simplification and Avoiding Duplication

MEP Svenja Hahn's Question

• Emphasised the need for simplification and reduction of bureaucracy in new legislation.

• Asked how McGrath plans to develop the DFA without duplicating existing laws and where he sees potential to cut red tape.

McGrath's Response

• Contribution to Simplification: Believes the DFA can simplify existing regulations by addressing unregulated areas rather than adding layers to current laws.

• Identified Opportunities: Simplifying information obligations for digital content purchases, as found in the recent digital fitness check.

• Avoiding Duplication: Assured that the DFA will not replicate existing legislation but will cover missing aspects crucial for consumer protection.

• Benefits for All: Emphasised that simplification will benefit both consumers and businesses.

Addressing Addictive Design and Big Tech

MEP Katarina Barley's Question

• Asked if McGrath commits to include concrete legislation to protect Europeans from addictive designs.

• Inquired whether he is prepared to tackle the business models of big tech companies.

McGrath's Response

• Concrete Measures: Confirmed that the DFA will include specific actions against addictive design features.

• Examples of Harmful Features: Identified infinite scroll, autoplay, and constant notifications as designs that require attention.

• Acknowledgment of Complexity: Admitted that while challenging, regulating these features is necessary.

• Additional Initiatives:

  • Mentioned an EU-wide inquiry on social media's impact on well-being.

  • Stressed the importance of using the Digital Services Act to ensure large platforms protect minors.

Protecting All Consumers from Addictive Design

MEP Kim van Sparrentak's Question

• Highlighted that addictive design affects consumers of all ages.

• Asked if the DFA will include binding rules against addictive designs for everyone and ban features like endless scroll and autoplay.

McGrath's Response

• Inclusive Protection: Affirmed that the DFA will cover all consumers, with special attention to minors.

• Understanding of Business Models: Recognized that big tech designs platforms to keep users engaged for advertising revenue.

• Commitment to Action: Emphasised the necessity of addressing harmful functionalities despite the complexity.

Dynamic Pricing and Transparency

MEP Pierfrancesco Maran's Question

• Raised concerns about dynamic pricing, citing the example of Oasis concert ticket sales.

• Asked if McGrath would regulate dynamic pricing in the DFA, especially in culture and entertainment.

• Brought up the issue of shrinkflation, where product quantity or quality decreases without a price change.

McGrath's Response

• Dynamic Pricing:

  • Acknowledged that while dynamic pricing isn't prohibited, aspects could be unfair to consumers.

  •  Expressed willingness to examine solutions within the DFA.

• Shrinkflation:

  • Highlighted the importance of the Price Indication Directive, which requires transparency on pricing.

  • Recognized the need for full transparency when product quality or composition changes.

• Enforcement: Noted that powers exist at the national level to address these issues but is open to enhancing EU-level regulations if necessary.