The European Union is launching a new set of digital rules that will affect how big tech companies operate in the region. The Digital Services Act (DSA) is part of a suite of tech-focused regulations crafted by the 27-nation bloc, which has been a global leader in cracking down on tech giants.
The DSA, which the biggest platforms must start following from Friday, is designed to keep users safe online and stop the spread of harmful content that is either illegal or violates a platform’s terms of service, such as promotion of genocide or anorexia. It also looks to protect Europeans’ fundamental rights like privacy and free speech. Some online platforms, which could face billions in fines if they don’t comply, have already started making changes. Here’s a look at what’s happening this week:
Which platforms are affected?
So far, 19 platforms have been identified by the EU as having 45 million or more users, or 10% of the EU’s population, which means they will face the highest level of regulation under the DSA. They include eight social media platforms: Facebook, TikTok, Twitter, YouTube, Instagram, LinkedIn, Pinterest and Snapchat. There are five online marketplaces: Amazon, Booking.com, China’s Alibaba AliExpress and Germany’s Zalando. Mobile app stores Google Play and Apple’s App Store are subject, as are Google’s Search and Microsoft’s Bing search engine. Google Maps and Wikipedia round out the list.
The EU’s list is based on numbers submitted by the platforms themselves, but it is not definitive and it is possible that other platforms may be added later on. Any business providing digital services to Europeans will eventually have to comply with the DSA, but they will face fewer obligations than the biggest platforms and have another six months before they must fall in line. Citing uncertainty over the new rules, Meta Platforms has held off launching its Twitter rival, Threads, in the EU.
What’s changing?
Platforms have started rolling out new ways for European users to flag illegal online content and dodgy products, which companies will be obligated to take down quickly and objectively. Amazon opened a new channel for reporting suspected illegal products and is providing more information about third-party merchants. TikTok gave users an “additional reporting option” for content, including advertising, that they believe is illegal. Categories such as hate speech and harassment, suicide and self-harm, misinformation or frauds and scams will help them pinpoint the problem.
Platforms will also have to publish regular reports on how they handle illegal content and complaints from users. They will have to appoint independent auditors to verify their compliance with the DSA and cooperate with national authorities that will oversee their activities. The EU will also set up a European Board for Digital Services that will provide guidance and recommendations on how to implement the DSA.
What are the benefits for users?
The DSA aims to give users more control over what they see online and more transparency about how platforms moderate content. Users will be able to appeal decisions to remove their content or accounts and request human review of automated actions. They will also be able to access more information about why they see certain ads or recommendations and opt out of targeted advertising or personalized content.
The DSA also seeks to protect users’ fundamental rights such as freedom of expression, privacy and non-discrimination. Platforms will have to respect these rights when they design their services and when they take action against illegal or harmful content. Users will also be able to file complaints with national authorities or seek redress through courts if they believe their rights have been violated by platforms.
What are the challenges for platforms?
The DSA poses significant challenges for platforms that operate across different countries and jurisdictions. They will have to comply with a complex set of rules that may vary depending on the type of service they provide, the nature of the content they host and the location of their users. They will also have to balance competing interests and expectations from users, regulators, advertisers and other stakeholders.
Platforms will also face hefty fines if they fail to comply with the DSA. The EU can impose fines of up to 6% of their annual global turnover or €30 million ($35 million), whichever is higher, for serious or repeated breaches of the rules. National authorities can also impose additional sanctions such as ordering platforms to suspend or restrict their services in certain cases.
How does the DSA compare with other digital rules?
The DSA is part of a broader effort by the EU to regulate the digital sector and ensure fair competition, innovation and consumer protection. The EU has also proposed other rules such as the Digital Markets Act (DMA), which targets dominant online platforms that act as gatekeepers for access to markets and customers; the Artificial Intelligence Act (AIA), which sets ethical standards and legal requirements for AI systems; and the ePrivacy Regulation (ePR), which updates the rules on data protection and confidentiality of communications.
The EU is not alone in trying to rein in big tech companies. Other countries such as the U.S., the U.K., Australia and India have also introduced or proposed new laws and regulations to address issues such as antitrust, privacy, content moderation and taxation. However, the EU’s approach is seen as one of the most comprehensive and ambitious in the world, setting a possible model for other regions to follow.
