Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I move: "That the Bill be now read a Second Time."

I am very pleased to bring this Bill before the House today with my colleague the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Calleary. The purpose of the Bill is to fully implement in Ireland Regulation 2022/2065 of the European Parliament and of the Council on a Single Market for Digital Services, commonly referred to as the EU Digital Services Act. The EU regulation has direct legal effect in all member states and, consequently, the obligations it places on regulated entities are directly applicable and require no further implementation in national law. The Digital Services Bill 2023 is a technical Bill, necessary to give full effect to the supervision and enforcement provisions of the regulation. The Bill does not add to, nor alter, the obligations placed on the regulated entities by the regulation.

The services available online have impacted on practically every facet of the lives of European citizens. These services have brought enormous benefits, socially, culturally and economically. They have provided unprecedented access to information and facilitated an entirely new level of connection and communication between geographically remote citizens. They are transforming for the better our work-life balance, the delivery of healthcare and education, and access to Government services. They have also opened up new enterprise opportunities for commerce and trade for so many people. Online services have, however, also created an entirely new source of risk for citizens and to society at large. These online safety risks include the dissemination of illegal and harmful online content and disinformation. Recent terrible events at home and abroad have underscored how acute these dangers are, and the need for governments to act to protect citizens and society at large. It was with this objective that the EU adopted, in November 2022, the EU digital services regulation. The regulation establishes a pioneering regulatory framework to protect EU users of digital services and their fundamental rights online. It aims to rebalance the responsibilities of users, online platforms and public authorities, placing citizens at the centre.

The regulation marks a sea-change in the EU’s ability to protect society from illegal and harmful online content and disinformation. The regulation is designed to improve online safety by placing obligations directly on providers of online intermediary services, with a focus on platforms such as social media and marketplace sites, as well as on search engines. These obligations are designed to expedite the identification and removal of illegal and harmful online content. The regulation also places obligations on service providers to improve the transparency of their services and to give users more control over their online experience. The European Commission has designated 19 entities as "very large online platforms" and "very large search engines" under the regulation. The European Commission has primary responsibility for regulating these entities but will do so in concert with national authorities. As 13 of these very large entities are established in Ireland, we have a unique, critically important and high-profile role in the overall EU regulatory framework for digital services. In other words, under the country of origin principle where a company is headquartered in European Union, that country - in this case Ireland for 13 of the 19 entities - has the obligation to regulate not only at home but right across the Single Market in its entirety. For this reason, it is imperative for our national reputation that Ireland enacts the Digital Services Bill before the EU deadline of 17 February next, when the EU regulation comes into full effect.

The regulation requires Ireland to designate a lead competent authority, to be known as the digital services co-ordinator. The digital services co-ordinator will be a single point of contact, with lead responsibility for all matters to do with the EU regulation in Ireland, including co-ordination across the EU, handling complaints, policy development, communications, supervision, investigation and enforcement. The Bill designates Coimisiún na Meán as the digital services co-ordinator for Ireland. As Deputies will be aware, Coimisiún na Meán was established by the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Deputy Catherine Martin, on 15 March 2023. The Bill adds the functions of the digital services co-ordinator to those the coimisiún already has and adapts the coimisiún's existing powers, such as powers of investigation and the power to impose financial sanctions for the specific cases, where it will be implementing provisions of the EU regulation. The co-location within Coimisiún na Meán of the supervisory and enforcement responsibilities for the digital services regulation, the EU terrorist content online regulation, the Online Safety and Media Regulation Act 2022, and the regulation of broadcasting and video-on demand services will enable efficient and cohesive implementation of the regulatory framework, for the benefit of citizens and providers. The synergies will also provide significant cost savings for the Exchequer.

The Bill designates the Competition and Consumer Protection Commission, CCPC, as a second competent authority with specific responsibility for the elements of the EU regulation relating to online marketplaces. The Bill provides both competent authorities with the necessary powers to carry out investigations and take enforcement actions, including the imposition of significant financial penalties for non-compliance. The Bill is prescriptive on how the competent authorities should exercise their powers to ensure that the principles of natural justice, fair procedures and proportionality are fully respected.

Having set out the background, context and purpose of the Bill, I will now outline its main provisions. The Bill is structured in four Parts with 78 sections. It has been drafted to ensure maximum alignment between the provisions for Coimisiún na Meán and those for the CCPC, while simultaneously maintaining consistency with their respective principal Acts, namely the Broadcasting Act 2009 and the Competition and Consumer Protection Act 2014. Part 1 of the Bill deals with preliminary and general matters common to legislation; namely, commencement, definitions, service of documents, etc. Part 2 of the Bill contains a series of amendments of the Broadcasting Act 2009 to designate and empower Coimisiún na Meán as the digital services co-ordinator and a competent authority for the EU regulation.

Sections 9 and 10 provide for an coimisiún to disclose, in certain circumstances, personal data and confidential information to the CCPC for the purpose of performing its functions under the EU digital services regulation.

Section 11 places an obligation on authorised officers and staff of an coimisiún to maintain professional secrecy.

Section 14 amends the definition of "contravention" to include infringements of the regulation. For investigations, the broader term "inquiry subject" is substituted for "provider" to include other persons as defined in the EU regulation.

Sections 15 and 16 specify the steps required to commence an investigation relating to an infringement of the regulation, including the requirements to notify the digital services co-ordinators in other member states and the European Commission.

Section 16 provides for joint investigations with competent authorities in other member states.

Section 17 contains the necessary technical amendments to ensure that the powers of an authorised officer can be exercised during an investigation into an infringement of the digital services regulation.

Section 18 provides that authorised officers may use their investigatory powers in a joint investigation led by another member state in an investigation conducted by the European Commission.

Section 19 provides that a daily penalty payment of up to 5% of daily income may be imposed on a person for the purpose of enforcing an obligation imposed by an authorised officer during an investigation. This section also empowers an coimisiún to require intermediary service providers to take interim measures in specific circumstances where a contravention is ongoing. It also provides that any proceedings, including summary proceedings, shall be taken by, or with the consent of, the Director of Public Prosecutions.

Section 20 provides that in joint investigations, the report of an authorised officer must take into consideration information or views provided by digital services co-ordinators or competent authorities in other member states. Sections 21 and 24 make provision for technical matters relating to the specific obligations regarding the conduct of joint investigations. Section 23 provides that a person may be liable for administrative financial sanctions if they do not comply with a request for information or if they supply false information. Section 25 provides that once an coimisiún has come to a decision relating to an infringement of the regulation, it must notify the European Commission and the digital service co-ordinators in other member states.

Section 28 sets out the maximum administrative financial sanctions that may be imposed by Coimisiún na Meán for these contraventions. These sanctions are significant: 6% of the annual turnover of the provider for infringements of certain articles of the regulation, for non-compliance with a commitment agreement entered into by the provider with an coimisiún, or for failure to take interim measures following an order to do so by an coimisiún; or 1% of the annual turnover or income of a provider or person for various infringements such as obstructing or impeding an investigation or knowingly providing false information. These percentages may sound small but given the turnover of some of these global giants, it is a lot of money, which gives the regulators significant teeth in the context of investigations.

Section 33 provides that, further to issuing a notice to end a contravention, Coimisiún na Meán may impose a daily penalty payment of up to 5% of daily turnover on the provider for the purpose of enforcing the notice. Section 34 provides that under certain circumstances where a provider does not comply with a notice to end a contravention, an coimisiún may apply to the High Court for an order requiring the provider to block access in the State to the service which is the source of the continuing contravention.

Section 36 empowers Coimisiún na Meán to issue compliance notices and to enter into a commitment agreement with a provider. Section 37 introduces provisions into the Broadcasting Act 2009 relating to vetted researchers, trusted flaggers and out-of-court settlement bodies. It provides for reviews, investigations, revocations and appeals relating to all three. It also creates offences for knowingly providing false or misleading information when applying for certification and sets out how Coimisiún na Meán shall handle complaints related to failure by providers to comply with the digital services regulation.

Part 3 designates the Competition and Consumer Protection Commission, CCPC, as a competent authority for three specific articles of the regulation relating to online marketplaces. The provisions for CCPC have been set out in a self-contained Part of the Bill. This Part provides that CCPC can use its powers of investigation, as provided for under the Competition and Consumer Protection Act 2014, in the context of EU regulation. Section 41 provides for the CCPC to enter into a co-operation agreement with Coimisiún na Meán to ensure effective and consistent implementation of their respective responsibilities.

Section 43 provides for the CCPC to disclose, in certain circumstances, personal data to an coimisiún for the purpose of performing its functions under the EU regulation. It also sets out how the CCPC shall handle complaints. Sections 45 to 54 set out how the CCPC shall conduct an investigation and enforce its investigative powers with administrative financial sanctions. Sections 55 to 58 set out the processes and steps the CCPC must follow in coming to a decision following an investigation and the receipt of a report. It also contains provisions regarding the notice and publication of decisions.

Sections 59 to 65 provide for the procedures and conditions regarding the application of administrative financial sanctions. These sanctions have the same limits as those for Coimisiún na Meán. Sections 67 to 69 contain provisions for the CCPC to issue a notice to end a contravention which is continuing. It also allows for a daily penalty for failing to comply with said notices, including provisions for appealing the penalty.

Sections 70 and 71 provide for further measures the CCPC may take when a contravention continues, including an application to the High Court for an order requiring a provider to block access in the State to the service which is the source of the continuing contravention.

Sections 72 and 73 provide the CCPC with additional enforcement powers of compliance notices and powers to enter into a commitment agreement with provider. These are the same powers granted to an coimisiún in section 36. Section 74 defines the potential fines and imprisonment terms on summary conviction or conviction on indictment for offences under Part 3 of the Bill. Section 75 provides that the CCPC may take a summary prosecution under Part 3. Part 4 contains miscellaneous provisions, including an obligation on authorised officers and staff of the CCPC to maintain professional secrecy.

It is imperative the State has a comprehensive and robust legal basis for the full and effective implementation of the EU digital services regulation. I am confident the Bill achieves this objective in a balanced and proportionate manner.

I thank my colleague, Deputy Calleary, and all our team in the Department, who did a huge amount of work to bring it to this point. I ask for help and co-operation across the House on getting the Bill done and ensuring it is law by 17 February. We will only get through some of Second Stage today but in the new year we will have to work quickly on this. We will listen in a helpful and constructive way to any concerns and to amendments the Opposition wants to bring forward. We have to get this done in time, which means co-operation where necessary. It would be a serious problem for Ireland if we cannot get this legislation enacted in plenty of time for 17 February. I hope Deputies will work with us on that and thank them in advance for their co-operation.

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