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New EC rules will require online platforms to ‘exhaustively disclose any advantage they may give to their own products over others’
Travel sites must improve transparency of rankings
Online platforms such as Google and Skyscanner face new EC rules requiring ‘disclosure of business practices’. Ian Taylor reports
The European Commission, European Parliament and EU Council have agreed new regulatory rules for online platforms including Google and price comparison sites such as Skyscanner.
The regulation requires
increased transparency in search rankings, “mandatory disclosure” of business practices and disclosure of data use, and confers new rights to sue platforms to “overcome fear of retaliation”. The new rules apply to “the entire
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online platform economy” and aim to create “a fair, transparent and predictable business environment for businesses and traders using online platforms”. They require greater
transparency in online platforms, including transparent ranking and “mandatory disclosure for a range of business practices”. The rules stipulate: “Market- places and search engines must disclose the main parameters they use to rank goods and services, to help sellers understand how
to optimise their presence.” Platforms will be required
to “exhaustively disclose any advantage they may give to their own products over others. They must also disclose what data they collect and how they use it – in particular, how such data is shared with other business partners.” The rules include a ban on
“unfair practices”, which the EC said would end “sudden, unexplained suspensions” of accounts by platforms. The EC said: “Digital platforms can no longer suspend or terminate a seller’s account without clear reasons and possibilities to appeal.” Platforms must “set up an
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