Starting this Friday, August 25, the Digital Services Act (DSA) will come into effect, marking a significant shift in how tech giants operate within the European Union (EU). The DSA is poised to directly impact major global technology companies, including Google, Meta (parent company of Facebook and Instagram), X (formerly Twitter), and TikTok, all of which maintain a substantial market presence in Europe.
The DSA imposes stricter regulations on these companies, requiring them to adjust their terms and conditions to tackle illegal content circulating on the internet and combat the spread of disinformation through social networks.
In total, the DSA's regulations against disinformation will affect 19 platforms and search engines that collectively serve 45 million users across the continent. While companies like Amazon and Zalando are also included in this category, they have contested the decision and taken their grievances to the General Court of the EU in an attempt to avoid compliance with the new regulations.
Immediate Actions Required
Prominent technology giants such as Meta, X, Google, and TikTok are obligated to formulate terms and conditions that are easily comprehensible to all users, including children. This emphasis on transparency aims to eradicate hoaxes, misinformation, and any form of illegality from their platforms.
To fulfil these requirements, these tech companies will unveil an annual evaluation process, set to commence this Friday, aimed at mitigating the risks associated with the dissemination of illegal content and preventing the manipulation of services that impact democratic processes and public safety.
Financial Consequences for Non-Compliance
A pivotal aspect of the Digital Services Act is the concept of "algorithmic responsibility." As part of this, both the European Commission and member states will gain access to the algorithms used by major online platforms. This access empowers them to swiftly remove illegal products, services, or content following reports of such violations. Failing to adhere to these guidelines could result in fines of up to 6% of a company's annual turnover.
With the DSA's legal applicability now in effect, large platforms and search engines operating within the EU are compelled to not only establish user-friendly terms and conditions but also implement mechanisms for appealing content moderation decisions. This comprehensive approach underscores the EU's commitment to addressing the challenges posed by digital platforms and their impact on society. As the first annual evaluation exercises commence, and transparency reports are due within the next two months, these companies face a renewed responsibility to ensure the integrity of their platforms and the safety of their users.
Updated: January 22, 2024 CET