BRUSSELS – Commencing this Friday, major digital corporations worldwide will find themselves with no escape route, as the strictest EU regulations on online content since the inception of social media come into effect. These groundbreaking laws are part of the European Union’s comprehensive strategy to rein in tech giants and establish order in what officials have labeled an online “Wild West.”
Known as the Digital Services Act (DSA), this legislation compels companies to take a more proactive stance in policing digital content, safeguarding users from disinformation and hate speech, under the threat of substantial fines. All eyes are now trained on how these platforms will conform to the new rules and the transformative potential the DSA holds for reshaping the digital landscape across Europe and potentially beyond.
Suzanne Vergnolle, a technology law professor at the National Conservatory of Arts and Crafts in Paris, noted, “The DSA is part of a broader strategy to empower individuals, regulators, and civil society, marking another step towards enhanced accountability.”
Under the DSA, platforms with a minimum of 45 million active monthly users must adhere to stricter regulations, including yearly compliance audits and an obligation to effectively combat disinformation. In April, the EU identified 19 sites, including Amazon Store, Apple’s AppStore, Google’s Play, Maps, and Shopping, clothing retailer Zalando, and social media giants like Instagram, LinkedIn, Pinterest, Snapchat, TikTok, YouTube, and Twitter (now rebranded as X), along with search engines from Google and Microsoft’s Bing.
Even before the regulations come into effect, Amazon and Zalando have launched legal challenges, asserting that their platforms do not meet the criteria triggering the initial wave of regulation.
Race to Conform
Despite the potential impact of these changes, individual users won’t experience an abrupt transformation next week due to the DSA’s enactment. John Albert from AlgorithmWatch, a nonprofit research and advocacy organization, stated, “We’re already witnessing early signs of platforms proactively pursuing compliance.”
Thierry Breton, the EU’s top official responsible for digital regulation enforcement, affirmed that companies “have had ample time to adjust their systems to the new obligations.” He emphasized his commitment to rigorously enforce the DSA and utilize new powers to investigate and penalize platforms as necessary.
This commitment has already been reflected in changes proposed by companies earlier this summer. Meta, the parent company of Facebook and Instagram, and TikTok announced steps they would take to comply, such as granting European users more control over content viewing and the option to opt out of profiling-based recommendations.
Particular attention will be focused on X since billionaire Elon Musk assumed control of the Twitter platform last year, raising concerns about content decisions and compliance. Breton has cautioned Musk about ensuring sufficient resources for content moderation.
Google has indicated that it hasn’t waited for the DSA to take effect, having already implemented measures to enhance transparency and accountability.
While facing legal challenges, the European Commission insists that companies must still adhere to the regulations, underlining the risk of fines of up to six percent of global revenue or even potential bans.
Further Regulations Loom
Another EU law targeting major tech corporations is on the horizon. Next month, the bloc will unveil the tech companies required to comply with more stringent competition rules outlined in the Digital Markets Act (DMA). In July, Brussels identified companies deemed “gatekeepers,” including Amazon, Apple, ByteDance (owner of TikTok), Google, Meta, Microsoft, and Samsung. Such a designation entails additional regulations, such as preventing companies from controlling pre-installed apps on phones and directing users exclusively to their products.
A company found in violation of DMA rules could face fines of up to 10% of its annual global revenue.
A Wave of Regulatory Efforts
The DSA and DMA mark the EU’s latest endeavors in regulating tech corporations. The monumental GDPR data privacy law was enacted in 2018, fundamentally transforming how companies handle user data and introducing fines for non-compliance. Brussels is also expediting the passage of a law that could be the world’s first to regulate artificial intelligence.
Although the DSA’s direct impact is confined to Europe, experts believe its influence could extend beyond the EU borders. Marc Mosse, a senior lawyer at August Debouzy in Paris, pointed out that “since platforms deploy these tools globally, there’s no reason to exclude users outside Europe.”
Even within Europe, the new regulations are likely to invite heightened regulatory scrutiny. Albert remarked, “This is a long-term effort. We’re just beginning to identify risks and figure out how to quantify them.