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what is the Digital Services Act (DSA)?
Table of Contents
The Digital Services Act (DSA) is a landmark European Union law designed to create a safer digital space for users and hold online platforms accountable for illegal and harmful content. It establishes a extensive set of rules for all digital services operating within the EU, ranging from social media platforms to online marketplaces. The DSA came into full submission for all services on february 17, 2024, with stricter obligations for Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) applying earlier, on August 25, 2023.
the DSA aims to address issues like the spread of illegal content, disinformation, and harmful products online. It introduces a tiered system of obligations based on the size and risk profile of the digital service. smaller platforms face lighter requirements, while VLOPs and vloses – those with over 45 million active users in the EU – are subject to more stringent rules, including risk assessments, autonomous audits, and greater clarity.
For example, the European commission designated 17 VLOPs and VLOSEs in April 2023, including Meta Platforms (Facebook, Instagram), X (formerly twitter), TikTok, and Google (YouTube, Google Search).
Key obligations Under the DSA
The DSA imposes a wide range of obligations on digital service providers. These obligations are categorized based on the type of service and its size.
- Illegal Content Removal: All platforms must have mechanisms to allow users to report illegal content and must act expeditiously to remove it once notified. The Commission’s press release details the notification process.
- Transparency Requirements: Platforms must be obvious about their content moderation policies, algorithms, and advertising practices. The full text of the DSA (Article 5) outlines these transparency requirements.
- User empowerment: Users must have more control over the content they see online, including the ability to opt out of algorithmic recommendations.
- Risk Assessments: VLOPs and VLOSEs must conduct regular risk assessments to identify and mitigate systemic risks, such as the spread of disinformation or the impact on basic rights.
- Independent Audits: VLOPs and VLOSEs are subject to independent audits to verify their compliance with the DSA.
On January 26,2024,the European Commission announced formal investigations against TikTok, Meta (Facebook and Instagram), X, and Google (YouTube) to assess their compliance with the DSA, specifically regarding the protection of minors, the spread of illegal content, and the transparency of advertising.
Enforcement and Penalties
The DSA is enforced by the European Commission, in cooperation with Digital Services Coordinators in each EU member state.The Commission has the power to impose important penalties for non-compliance, including fines of up to 6% of a company’s global annual revenue. Repeated serious infringements can even led to a ban on operating in the EU.
The enforcement process begins with investigations triggered by complaints, own-initiative scans, or information from member states. If the Commission finds a violation, it can issue a request for information, conduct on-site inspections, or impose interim measures. Formal decisions can be appealed to the Court of Justice of the European Union.
As of January 29, 2024, the Commission requested information from X regarding its measures to combat the spread of illegal content and disinformation, particularly in the context of the upcoming European Parliament elections.
Impact on Companies and Users
The DSA is fundamentally reshaping the digital landscape in Europe. Companies operating in the EU must adapt their policies and practices to comply with the new rules. This includes investing in content moderation systems, enhancing transparency, and empowering users.
For users, the DSA promises a safer and more transparent online experience. They will have more control over the content they see, greater recourse against illegal content, and increased protection of their fundamental rights. However, the full impact of the DSA will unfold over time as enforcement actions are taken and platforms adjust to the new regulatory environment.
In December 2023, the European Parliament published a detailed overview of the changes brought about