Euronews Digital Summer: New head of consumer group has AI, telco regulations in sights

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Consumer law will apply to AI-powered products, but AI did not exist when it was created, a gap that is foremost among concerns of Agustín Reyna, the new Director General of EU consumer organisation BEUC told Euronews in the latest of our digital summer series. Digital laws proliferated under the last mandate of the European Commission, led by the Commissioner for Internal Market, Thierry Breton, and the Commissioner for Competition, Margrethe Vestager. What impact have these laws had on online consumers? Has consumer protection been adequately considered during the drafting process, and are they being enforced properly?

 Reyna took on the director generalship of BEUC June -after starting at the organisation as an intern 14 years ago. BEUC defends consumer rights across a wide range of topics: from digital to energy and from financial services to healthcare, and also plays a key role in high-profile European antitrust cases, notably against Big Tech.

Euronews: Your predecessor (Reyna took over from Monique Goyens in June 2024) was director of BEUC for almost two decades. How will your leadership differ from hers?

Agustín Reyna: I wouldn't change much in terms of management, but I will adapt to the new political landscape we need to navigate. With the results of the European elections, a new European Commission, and changes across member states, we must reconsider our procedures as an organisation. We now have a European Parliament that leans more to the right and is more diverse, making it harder to reach compromises. 

Euronews: What are your priorities for the next mandate?

Agustín Reyna: Our focus is on unfinished business. There are several ongoing issues that need to be addressed. For example, in the digital sector, there's a significant emphasis on implementation and enforcement. However, there are also areas where further action is required, such as updating consumer law with the digital refit.

A crucial aspect of consumer protection is empowering the Commission to enforce consumer law. Currently, we have the Consumer Protection Cooperation Network, which supports consumer authorities. However, we still lack centralised powers to act against companies that violate consumer laws. We need a system comparable to the enforcement mechanisms we have in competition law, as seen with the Digital Markets Act (DMA) and Digital Services Act (DSA).

Euronews: What is the status of the digital fairness check, which is meant to assess the protection of consumers online?

Agustín Reyna: This example illustrates how BEUC actively engages with the Commission. We began by rethinking consumer protection in the digital era, conducting thorough studies and collaborating closely with the Commission. The Commission then decided to carry out a refit check to assess whether the current consumer directives need to be adapted to address new challenges. We expect a report summarising the results to be published soon. This report will provide indications on whether there will be a proposal in the next Commission.

The outcome could lead to amendments to the Unfair Commercial Practices Directive or the Unfair Contract Terms Directive, or even the introduction of a new Digital Fairness Act. This would complement the existing measures under the DMA and the DSA, filling in the gaps.

Euronews: What are the priorities in terms of Artificial Intelligence?

Agustín Reyna: When considering AI and the AI Act, the key focus is on ensuring adequate protections for everyday consumer products powered by AI. The AI Act adopts a risk-based approach, listing some products and prohibiting certain practices, such as social scoring. However, many consumer products fall outside its scope.

Consumer law reform and the ongoing digital refit play a crucial role here. While consumer law will apply to AI-powered products, it was not originally designed with AI in mind. We need to address gaps in consumer protection that the AI Act does not cover. For example, we must consider how to regulate AI applications like ChatGPT or AI-driven consumer assistance.

Euronews: There is an AI Liability Act on the way, meant to protect people from faults caused by AI. Are you following its progress?

Agustín Reyna: Yes, we are monitoring it closely. It’s crucial to consider not only how AI technology is designed and the consumer protection mechanisms in place but also what happens when things go wrong. 

The AI Liability Act is still in its early stages. We are waiting to see how it will progress with the new Parliament, who the MEPs working on it will be, and what the final proposal will look like. 

Euronews: On the DMA and DSA, you've been very active, for example with the case of the Chinese online platform Temu. Are there other complaints you’re currently looking at?

Agustín Reyna: This remains a high priority for us. We have been contributing to the DMA processes throughout its adoption and are closely monitoring the situation. It’s encouraging that the Commission has now initiated these investigations, as it demonstrates a serious commitment to enforcement. BEUC has a longstanding role in influencing competition cases that have contributed to the development of the DMA, partly because antitrust enforcement often shows its limitations—being too slow and too case-specific.

Regarding the DSA, we are approaching it from a different angle, focusing on safety and consumer protection across platforms. We have already filed our first complaint against Temu for alleged breaches of the DSA, and the European Commission has requested information from Temu in response.

Euronews: Are you collecting evidence against any other platforms?

Agustín Reyna: We are continually monitoring platforms through feedback from our members. Based on this feedback, we identify opportunities to take action. Currently, our focus has been on the cases that are already open. However, we anticipate that there may be other cases in the future. For example, Temu was not initially designated as a Very Large Online Platform (VLOP) when we filed our complaint, but we knew they were approaching the relevant thresholds. Since then, they have been designated and proceedings have been initiated. Similarly, there could be other platforms that might come under scrutiny in the future.

Euronews: One of the major files for the next Commission will likely be telecom-related, possibly involving the Digital Network Act. What is the consumer protection position on this issue?

Agustín Reyna: This is a significant concern for us. The incumbent telecom industry is advocating for what we refer to as market consolidation, essentially aiming to increase prices by reducing competition. We strongly oppose this because the liberalisation of telecom markets has been beneficial for consumers in Europe. Europeans have enjoyed competitive pricing for internet and mobile services, largely due to the pro-competitive framework currently in place. This progress is now at risk due to pressure from the telecom industry, which is supported by some politicians as well.