The European Centre for Algorithmic Transparency was launched to support the enforcement of the Digital Services Act and evaluate the social effects and risks of AI algorithms.
The influence of algorithms on our day-to-day life increasingly grows, and at the same time, transparency and traceability decrease. To oppose this development and protect users, the European Commission (EC) proposed the Digital Services Act (DSA) and the Digital Markets Act (DMA). One crucial aspect of the DSA is the analysis of algorithms, the risks they pose and the social impact they have. These tasks should be carried out by the new European Centre for Algorithmic Transparency (ECAT). It launched officially on 18 April 2023 and is now co-managed by DG JRC and DG CONNECT. For the beginning, the Centre, which should reach its final size by the end of the year with about 30-40 people, is financed from the JRCs existing budget and hosted at their premises in Sevilla, Spain.
The ECAT will provide the EC with in-house technical and scientific expertise to ensure that the algorithmic systems of Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSE) affected by the DSA are complying with the risk management, mitigation and transparency requirements of the regulation. Therefore, the ECAT will carry out technical analyses and evaluations and support the EC in the enforcement of the DSA. Additionally, the interdisciplinary team, including not only data scientists and AI experts but also social scientists and legal experts, will go even beyond by assessing and proposing best practices of transparent algorithms, advancing the existing expertise of the JRC in the field of AI and investigating the long-term societal impact of algorithms.
To tackle the main topics covered by ECAT, it is planned to use an approach combining various methodologies to integrate technical, ethical, economic, legal and environmental perspectives. The expertise of the ECAT’s staff is planned to be widened with the knowledge and input from fellows and experts from external institutions. To ensure a broad-based collective approach, it is planned to establish an international network of stakeholders comprising EU Member States, the research community, independent auditors, industry representatives and practitioners and civil society. As a first step towards this network, the official launch of ECAT was followed by a two-day workshop for the community to mutually present existing projects, network and develop concepts for future cooperation.
The two legislative acts DSA and DMA, which are the core of the EC’s ambition to develop a comprehensive European framework to ensure a safer and more fair digital space were both agreed on by co-legislators in April 2022. The DSA entered into force on 16 November 2022 and set the deadline for digital service providers to publish the number of their active monthly users by 17 February 2023. The number of users will decide now which platforms and search engines will be designated as VLOPs and VLOSE. Categorised as such, these service providers will then be under closer evaluation by ECAT. If a service platform that connects consumers to goods, services or content of any kind has monthly active user numbers exceeding 45 million, roughly 10% of the EU citizens, they are defined as VLOP or VLOSE and therefore obliged to follow the extensive DSA obligations. These platforms, which will very likely include well-known service providers like Google, Amazon or Facebook (Meta), have four months after designation to comply with all DSA obligations and submit their risk assessments. Additionally, the DSA will apply to all intermediary services and demand Member States to appoint Digital Service Coordinators by 17 February 2024. The DSA is the first-of-a-kind regulatory toolbox, especially on an international level, which is heading to reduce harms and counter risks online and therefore provide stronger protection of user rights.
According to the EU Digital Policy: Analysis of the Impact on Switzerland, published on 18 April 2023 by the Federal Office of Communications both regulations affect Swiss Stakeholders but are not inducing the need for immediate regulation in Switzerland as there are no market access barriers. Meanwhile, Swiss Service providers active in the EU must comply with the provisions of the EU’s internal market. In the case of the DSA, there are effects which probably remain limited, but can only be conclusively evaluated once the regulation is fully implemented. In the case of the DMA, the impact on Switzerland is very likely even lower, as there are no Swiss large platforms or access controllers as affected by the regulation. Even if there is no direct need for action based on EU digital policy, the analysis finds it can induce independent Swiss actions.