Brussels, Belgium – The European Parliament’s Committee on Internal Market and Consumer Protection (IMCO), meeting in the heart of the European Union capital on April 24, 2025, took a decisive step towards shaping the future of digital regulation. The committee formally approved the final text defining key obligations under the proposed ‘Digital Markets & AI Governance Act 2025’, a sweeping legislative initiative aimed at reining in the power of large online platforms and establishing a framework for artificial intelligence oversight.
The vote represents a critical milestone in the EU’s ongoing efforts to create a fairer and safer digital environment, particularly for consumers and smaller businesses interacting with dominant ‘gatekeeper’ online platforms. The proposed act, championed by lead rapporteur MEP Eva Rostova, introduces a series of stringent requirements designed to foster competition and user choice.
Key Digital Market Provisions Approved
Among the most impactful provisions approved by the IM IMCO committee are those targeting the operational dynamics of ‘gatekeeper’ platforms. The final text mandates data portability standards, specifically detailed in Article 12a, which will require these platforms to make user data readily available and transferable to other services. This measure is intended to lower switching costs for users and facilitate innovation by allowing third parties access to data, with appropriate privacy safeguards.
Furthermore, the committee finalized interoperability provisions for messaging services, outlined in Section 3, Article 25. This significant requirement could compel large messaging platforms operated by gatekeepers to open up their systems to smaller competitors, potentially allowing users on different services to exchange messages seamlessly. Proponents argue this will break down monopolies in communication services and give users more freedom of choice without losing access to their contacts.
Establishing the European AI Oversight Board
A crucial element of the proposed legislation extends beyond market regulation into the rapidly evolving field of artificial intelligence. The act establishes the ‘European AI Oversight Board’ (EAIOB), a new body tasked with overseeing the development and deployment of AI systems within the bloc. The EAIOB is granted significant powers, notably the authority to audit high-risk AI systems that could have substantial societal or individual impacts, such as those used in critical infrastructure, healthcare, or law enforcement.
The establishment of the EAIOB underscores the EU’s proactive approach to AI governance, aiming to balance innovation with safety and fundamental rights. To support its crucial mandate, the proposed act includes a substantial initial budget of €75 million allocated for the 2026-2027 period, signaling the Union’s commitment to resourcing this new regulatory body adequately.
Path Forward: Parliamentary Vote and Implementation
Following the IMCO committee’s approval of the final text on April 24, 2025, the proposed ‘Digital Markets & AI Governance Act 2025’ now moves closer to becoming law. The full European Parliament is anticipated to hold its final vote on the comprehensive package in early June 2025. Given the broad support garnered during the committee stage, passage is widely expected.
Should the act receive final approval, a phased implementation is scheduled to begin in January 2027. The staggered rollout is intended to provide businesses, particularly the designated gatekeeper platforms, sufficient time to adapt their services and infrastructure to comply with the new obligations, including the complex data portability and interoperability requirements.
The ‘Digital Markets & AI Governance Act 2025’ represents one of the most ambitious regulatory efforts globally to address the intertwined challenges presented by powerful tech platforms and emerging artificial intelligence technologies. The IMCO committee’s finalization of key provisions in Brussels marks a pivotal moment in this legislative journey, setting the stage for the full parliamentary decision and the eventual transformation of the EU’s digital landscape.
