What do online providers need to know about the EU Digital Services Act?
The Digital Services Act (DSA) is a significant regulatory framework implemented by the European Union (EU), targeting digital intermediary services to foster a safer, more transparent, and accountable digital environment.
This landmark legislation, alongside the UK's Online Safety Bill, is reshaping the way digital platforms operate, emphasising user protection and content moderation to foster a safer internet.
The DSA sets a new standard for digital regulation in the EU, impacting major companies like Google, Meta (formerly Facebook), and Amazon. Platforms with over 45 million active EU users are particularly targeted, facing fines of up to 6% of global turnover for non-compliance. Smaller platforms face penalties as per national laws.
The key tenets of the DSA
User safety and transparency: enhanced measures to protect minors, including banning targeted advertising based on children’s personal data.
Content moderation: platforms must promptly address illegal content and provide efficient user reporting mechanisms.
Privacy and safety for minors: overhaul of systems for robust privacy and safety, including redesigning content recommender systems.
Transparency and data sharing: mandatory data sharing with researchers and authorities, and external auditing requirements.
Consumer protection: introduces new rules for online marketplaces to combat scams and enhance product traceability.
The DSA also introduces a tiered system of responsibilities, recognising the diverse nature of digital services. Special rules are set for very large online platforms (VLOPs) and search engines (VLOSEs), acknowledging their significant impact on the digital ecosystem.
How are platforms currently responding to the DSA?
Meta has been proactive in adapting to the DSA. Their approach includes developing transparency measures, customising user experiences, and enhancing ad transparency. Given that the DSA also requires online platforms to provide more transparency on how their algorithms work, in June Meta released an explanation on how their algorithm works. Similarly, TikTok announced the intention to let users opt out of their algorithm for video suggestions.
X, formerly known as Twitter, has also taken steps to comply with the EU's stringent regulations, focusing on combating fake news and online crime. These moves underscore the industry's broader shift towards greater regulatory compliance.
The path to a safer internet
The DSA empowers users with new rights, including comprehensive complaint mechanisms, out-of-court settlements, and compensation for breaches. This user-centric approach is a significant stride towards a more democratic and fair digital space.
Businesses must ensure compliance with the DSA, integrating the necessary mechanisms and safeguards by the set deadlines. For users, staying informed about their new rights under the DSA is crucial.
The DSA is one facet of a new era in digital regulation, emphasising the collective responsibility for a safer, more accountable internet. This legislative evolution is not just a compliance challenge but an opportunity to foster trust and safety in the digital world.