The EU's Digital Services Act Revolutionizes Online Responsibility

The European Union has taken a groundbreaking step in regulating the digital space with the Digital Services Act (DSA), a comprehensive piece of legislation that went into full effect this Saturday. The aim of the DSA is to create a safer and more accountable online environment, where digital platforms take more responsibility for the content they host and the actions of their users. Companies of all sizes are required to comply, though the smallest firms have been granted partial exemptions.

Under this landmark regulation, digital platforms must now proactively engage in content moderation, including the quick removal of illegal content or blocking access to it as soon as they become aware of its presence. This includes anything from hate speech to fraudulent activity. Furthermore, companies are expected to promptly inform authorities when they come across any criminal offenses that could pose a threat to public safety.

To promote transparency, the DSA stipulates that all companies operating within the EU must publish an annual report. This report should outline the steps taken to moderate content, the timeframe of these actions, and the outcomes of disputes with users. Suspension of users who repeatedly share illegal content is another mandatory action required by the law.

The DSA also enhances privacy protections, particularly through restrictions on targeted advertising. Notable is the complete ban on targeted ads directed at individuals 17 years old and under, and the prohibition of using sensitive data, such as ethnicity, sexual orientation, or religious beliefs, for advertising purposes.

One significant facet of the DSA is that it does not burden small companies—defined as having fewer than 50 employees and a turnover of below 10 million euros—with the more onerous obligations. This consideration ensures that the law is enforceable without stifling innovation and growth among Europe's small businesses.

The DSA has named 22 “very large” platforms, including tech titans like Apple, Amazon, Facebook, and Google, all of whom are subjected to additional regulations due to their size and impact. These entities must conduct thorough risk assessments concerning the spread of illegal content and privacy breaches, and must submit to yearly audits and data access provisions that allow for regulatory compliance checks.

Legal challenges to the DSA have arisen, with companies like Amazon and Zalando contesting their classifications as “very large” platforms, and Meta and TikTok disputing a fee for enforcement. The large platforms must now incorporate internal structures to mitigate risks and appoint independent supervisors to oversee compliance with the rules.

The EU wishes to streamline the process for users to make complaints against platforms they believe are violating the DSA. National authorities now have the power to investigate and sanction smaller companies, while the European Commission holds sway over the “very large” platforms. In the case of repeat non-compliance, the EU can impose fines up to six percent of a company's global turnover and has the authority to ban platforms from operating within the region.

This Saturday marks a new chapter for digital platforms operating in the EU as they work to align with the rigorous demands of the DSA. The legislation is a pivotal step in holding digital companies accountable and safeguarding Europe's digital ecosystem.