At the end of April 2022, the EU states and the European Parliament agreed on a Digital Services Act (DSA) ( we reported on it here) that addresses the most pressing problems of the Internet age. The platforms should thus take on more responsibility. It is a milestone in the history of the European Union.
The DSA is part of a digital package that the EU Commission proposed at the end of 2020. The second part of the digital package is the Digital Markets Act ( DMA ), on which there was already an agreement at the end of March 2022. The DMA aims to limit the market power of tech giants like Google and Facebook with stricter rules.
Who do the new rules apply to?
In principle, the new rules will apply to digital intermediaries that provide consumers with access to goods and content. This affects online marketplaces like Amazon, social media like Facebook and the video platform YouTube or search engines like Google. The following applies: the larger the service, the stricter the rules. Small businesses with fewer than 45 million active users per month can expect exceptions.
What does the DSA cover?
Quickly removing illegal content such as hate speech, calls for violence or terrorist propaganda – these are the goals of the DSA. Users should be able to easily report such content and companies should be able to delete the content promptly after being tipped off. There should also be the opportunity to challenge the platforms' deletion decisions and demand compensation.
A distinction is made between illegal content and content that is harmful but falls under freedom of expression - such as lies about the effectiveness of vaccines. The spread of such fake news can endanger people's health. Another example are false claims about eating disorders, which can drive young people to anorexia.
How will online trading of content and goods be regulated in the future?
- Marketplaces on the Internet are obliged to carefully check providers before possible cooperation. This should ensure that fewer counterfeit products end up online.
- Sensitive data such as religious beliefs, sexual preferences or political views may only be used to a limited extent for targeted advertising.
- In principle, minors will no longer be shown personalized advertising.
- Social networks need to make their recommendation algorithms more transparent.
Violations result in penalties of six percent of global annual turnover.
What is new is a crisis mechanism that the EU Commission subsequently added because of the Russian attack on Ukraine. The proposal aims to limit the impact of manipulation on the Internet in cases such as war, pandemic or terrorism. The EU Commission can trigger the mechanism on the recommendation of the panel of national DSA coordinators and then decide on its application.
What's changing for large services?
Platforms and search engines with 45 million or more users are considered large. With regard to harmful content, these companies will in future have to submit a risk assessment once a year and suggest necessary solutions. These reports are examined by the EU Commission, among others. Researchers should also have access to relevant data to analyze how the platforms work and how risks develop on the Internet.
The European Parliament and the EU states still have to confirm the new rules for digital services, which is considered a formality. After entry into force, a transition period is planned, so that the new rules are expected to apply from January 1, 2024. For large digital services, this should happen as early as mid-2023.
There is further information on the conference topic “Digital Change” . Read about how is regulated in the EU
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