The EU’s landmark legislation known as the Digital Services Act requires internet corporations to crack down on illegal and harmful content. Since August, the regulation has applied to very large platforms with over 45 million active monthly users in the European Union, and the world’s largest digital companies face significant fines if they violate it.
The massive rule goes into effect for all businesses on Saturday, with some exceptions for the tiniest businesses.
The European Commission has already launched a round of inquiries into what digital companies have done to comply, with additional steps expected.
Here are the regulation’s essential components:
Rules for every platform
Among their requirements, all platforms must immediately remove illegal content or prevent access to it as soon as they become aware of the issue.
They must also promptly notify the authorities if they detect a criminal offense that endangers people’s lives or the safety of others.
Every year, businesses must produce a report detailing their content moderation measures and the time it took to respond after being notified of illegal content. They will also report on choices made in disagreements with users.
The rule requires platforms to suspend users who often publish illegal content, such as hate speech or bogus adverts, while online shopping sites must check users’ identities and block repeat fraudsters.
Targeted advertising is also subject to stricter regulations, with such commercials prohibited for children under the age of 17.
In addition, the EU wants people to understand how their data is used, and the law bans targeted advertising based on sensitive data, such as ethnicity, religion, or sexual orientation.
The law’s more stringent requirements do not apply to small businesses, which are defined as having fewer than 50 employees and a revenue of less than 10 million euros.
Additional rules for huge platforms
The European Union has designated 22 “very large” platforms, including Apple, Amazon, Facebook, Google, Instagram, Microsoft, Snapchat, TikTok, apparel retailer Zalando, and three prominent adult websites.
Amazon and Zalando have filed legal challenges to their designations, while Meta and TikTok are challenging a charge for enforcement.
These huge platforms must analyze the risks associated with their services, particularly the propagation of illicit content and privacy violations.
They must also establish internal procedures to reduce such risks, such as improved content moderation.
Furthermore, the platforms must let regulators access their data so that officials may determine if they are in compliance with the rules.
This access will also be provided to approved researchers.
Firms will be audited once a year by independent bodies (at their own expense) to ensure compliance and an impartial digital supervisor will be appointed to monitor compliance with the requirements.
Complaints and fines
The DSA hopes to make it easier for users’ grievances to be heard.
Users can file a complaint with their appropriate national authorities alleging that a platform violates the DSA.
Online shopping sites may be held liable for any damage caused by products purchased by users that are non-compliant or unsafe.
Violations can result in fines of up to 6% of a company’s global turnover, and the EU has the authority to ban offending platforms from Europe if they fail to comply repeatedly.
The commission will be authorized to approve “very large” platforms.
EU, national coordination
According to the regulation, the EU’s 27 member states must designate a competent entity with the competence to investigate and discipline any breach by smaller enterprises.
To apply the legislation beginning in February, these authorities must collaborate as well as the Commission, the EU’s executive arm.
If a digital platform provider is based in one of the member states, that country is responsible for enforcing the laws, with the exception of particularly large platforms, which are overseen by the commission.