EXECUTIVE SUMMARY 1

TABLE OF CONTENTS 5

1. INTRODUCTION 7

2. ONLINE RISKS AND HARMS FOR CHILDREN 9

  2.1. CONSUMER RISKS 9

  2.2. CONTENT RISKS 10

  2.3. CONDUCT RISKS 10

  2.4. CONTACT RISKS 10

  2.5. CROSS-CUTTING RISKS 10

3. CONNECTING ONLINE BUSINESS MODELS TO RISKS 12

  3.1. INCENTIVES FOR FIRMS TO CREATE RISKY ONLINE SERVICES 12

  3.2. A FRAMEWORK TO CONNECT BUSINESS MODELS TO RISK 14

    3.2.1. BUSINESS MODEL DIMENSIONS RELATING TO CONSUMER RISKS 15

    3.2.2. BUSINESS MODEL DIMENSION RELATING TO CONTENT RISKS 19

    3.2.3. BUSINESS MODEL DIMENSION RELATING TO CONDUCT RISKS 20

    3.2.4. BUSINESS MODEL DIMENSION RELATING TO CONTACT RISKS 22

    3.2.5. BUSINESS MODEL DIMENSION RELATING TO CROSS-CUTTING RISKS 23

4. PUTTING THE FRAMEWORK TO USE 28

  4.1. SUBSCRIPTION-FINANCED VIDEO STREAMING SERVICE WITH PREDOMINANTLY FIRST-PARTY CONTENT 28

  4.2. AD-FINANCED SOCIAL NETWORKING SERVICE 29

  4.3. SUBSCRIPTION-FINANCED AI ASSISTANT 30

  4.4. INTERMEDIATE CONCLUSIONS 31

5. SERVICE ACCESS LAYERS AND SERVICE ECOSYSTEMS 33

    5.1.1. RISKS TEND TO ACCUMULATE ALONG THE SERVICE LAYERS 34

    5.1.2. MISALIGNED INCENTIVES TEND TO BE STRONGER AT THE END-SERVICE LAYER 34

    5.1.3. ECONOMIC INCENTIVES TO PROPERLY EXERCISE CONTROL FUNCTIONS FOR CHILD PROTECTION, SUCH AS AGE VERIFICATION, ARE BEST ALIGNED AT THE DEVICE LAYER 35

6. EU DIGITAL RULEBOOK 37

  6.1. CURRENT RULEBOOK 37

  6.2. OUTLOOK 40

7. POLICY RECOMMENDATIONS 42

  7.1. GENERAL FRAMEWORK 42

    RECOMMENDATION 1: (RISK-BASED OVERSIGHT) 42

  7.2. RULES APPLICABLE TO ALL SERVICES, IRRESPECTIVE OF THEIR OVERALL RISK PROFILE 45

    RECOMMENDATION 2 (USAGE DURATION) 45

    RECOMMENDATION 3 (OPAQUENESS OF MONETISATION) 47

    RECOMMENDATION 4 (DATA COLLECTION) 50

  7.3. RULES APPLICABLE TO HIGH-RISK SERVICES 51

    RECOMMENDATION 5 (ACCESS TO HARMFUL CONTENT) 52

    RECOMMENDATION 6 (USER-GENERATED CONTENT) 56

    RECOMMENDATION 7 (INTER-USER INTERACTION) 57

    RECOMMENDATION 8 (EXPOSURE TO EXPERIMENTAL TECHNOLOGY) 58

  7.4. SUMMARY 59

8. CONCLUSIONS 61

9. REFERENCES 62

ABOUT CERRE 69

ABOUT THE AUTHORS 70