The European Union’s landmark legislation, known as the Digital Services Act (DSA), aims to hold digital companies accountable for addressing illegal and problematic content. While the law has been in effect since August for very large platforms, it will now apply to all companies from Saturday, with some exemptions for smaller firms. To ensure compliance, the European Commission has initiated investigations into the actions taken by digital giants, with more regulatory actions anticipated. This article examines the key elements of the DSA and its implications for digital companies operating within the European Union.
One of the primary obligations outlined in the DSA is that all platforms must promptly remove or disable access to illegal content as soon as they become aware of its existence. Additionally, companies are required to report criminal offenses that endanger lives or pose a threat to safety. To foster transparency, platforms must publish an annual report detailing their content moderation practices, response times to illegal content reports, and decisions made during user disputes.
The DSA mandates that platforms suspend users who frequently share illegal content such as hate speech or fraudulent advertisements. Moreover, online shopping sites must verify user identities to prevent repeat fraudsters from engaging in illicit activities. The law also places stricter restrictions on targeted advertising, prohibiting such ads for children under the age of 17. In an effort to safeguard user privacy, the EU aims to provide individuals with visibility into how their data is used. The DSA bans targeted advertising based on sensitive data, including ethnicity, religion, or sexual orientation.
While the DSA imposes rigorous obligations on larger platforms, exempting smaller companies with fewer than 50 employees and a turnover of less than 10 million euros, it places significant responsibility on the former group. Designated as “very large” platforms, companies such as Apple, Amazon, Facebook, Google, Instagram, Microsoft, Snapchat, TikTok, and Zalando must assess risks associated with the spread of illegal content and privacy infringements. They are required to establish internal structures to mitigate these risks, such as improved content moderation systems.
To ensure compliance, platforms must grant regulators access to their data for scrutiny and assessment. This data access will also be extended to approved researchers. Furthermore, these companies will undergo annual audits conducted by independent organizations at their own expense. The purpose of these audits is to evaluate compliance with the DSA and establish an independent internal supervisor to monitor adherence to the regulations.
The DSA aims to provide an accessible avenue for user complaints. Users can lodge complaints with their competent national authority if they believe a platform is violating the DSA. Online shopping sites may also be held accountable for any damages resulting from the sale of non-compliant or dangerous products. Violations of the DSA can lead to fines of up to six percent of a company’s global turnover. In cases of repeated non-compliance, the EU may even choose to ban offending platforms from operating within Europe.
Under the DSA, each of the EU’s 27 member states must appoint a competent authority responsible for investigating and sanctioning violations committed by smaller companies. These authorities are required to collaborate with one another and the European Commission, the EU’s executive arm, to enforce the regulation effectively. While the country where a digital platform provider is located is primarily responsible for enforcing the rules, very large platforms fall under the commission’s supervision.
The Digital Services Act represents a significant step forward in regulating digital platforms within the European Union. By imposing strict obligations, promoting transparency, and holding companies accountable for illegal and problematic content, the EU aims to create a safer and more transparent digital environment. It remains to be seen how companies will adapt to these new regulations and how effective the enforcement measures will be in curbing the spread of illegal content and protecting user rights.
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