The European Parliament and the European Union (EU) Member States have recently arrived at a political agreement concerning the Digital Services Act (DSA), aiming to regulate Internet companies’ handling of disinformation, illegal and harmful content. This landmark legislation is designed to enhance protection for Internet users and their fundamental rights. Key features of the proposal include a robust set of rules on intermediaries’ obligations and accountability across the single market, ensuring enhanced protection for all EU users.
What is the Digital Services Act and Who Does it Affect?
The DSA, as defined by the EU Commission, constitutes a common set of principles guiding intermediaries’ roles and responsibilities across the single market. The Act aims to stringently regulate the manner in which intermediaries, notably major platforms like Google, Facebook, and YouTube, handle user content moderation. Such a legislation would significantly transform the era of self-regulation prevalent among tech companies.
As per the EU’s declaration, the DSA would influence a broad spectrum of online services, ranging from simple websites to Internet infrastructure services and online platforms. The obligations for each of these entities will vary based on their size and role. The legislation encapsulates platforms providing internet access, domain name registrars, and hosting services such as cloud computing and web-hosting services.
Significantly, Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) will face more stringent requirements. Any service with more than 45 million monthly active EU users will fall under this category, while those with under 45 million will be exempt from certain obligations.
The Enforcement of the Digital Services Act
Post-legalization of the DSA, each EU member state, along with a newly instituted European Board for Digital Services, will carry primary enforcement responsibilities. The EU Commission will execute improved supervision and enforcement for the VLOPs and VLOSEs. Breaching these regulations could lead to substantial penalties, potentially reaching 6% of the concerned company’s global annual turnover.
Understanding the Newly Proposed Rules
The DSA introduces new procedures on online platforms such as Facebook, Google, and YouTube for a faster removal of illegal or harmful content. Marketplaces like Amazon will be required to impose a duty of care on sellers utilizing their platform for online sales, gathering and presenting information about products and services to inform customers adequately.
Furthermore, the Act imposes an obligation on very large digital platforms and services to analyze systemic risks they foster and conduct risk reduction evaluations annually. Independent, vetted researchers may be granted access to public data from these platforms to conduct studies understanding these risks better.
Other Key Considerations in the Digital Services Act
The DSA proposes a ban on ‘Dark Patterns’ or misleading interfaces designed to deceive users into performing actions they might not typically agree to. It also incorporates a short-term crisis mechanism clause that can be activated based on the recommendation of the national Digital Services Coordinators’ board.
Finally, the Act proposes transparency measures for online platforms regarding various issues, including the algorithms used for recommending content or products to users. This revolutionary piece of legislation, seeking to end self-regulation by tech companies, signifies a major step in ensuring safer and more protected internet use across the EU.
