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- The Digital Services Act (DSA) is a European Union law that establishes a comprehensive set of new obligations for online platforms to protect fundamental rights online, including freedom...
- The DSA aims to create a safer digital space where illegal content can be quickly removed, users have more control over what they see online, and platforms are...
- For example, on February 17, 2024, the European Commission designated 17 VLOPs and VLOSEs, including Meta Platforms, Apple, Google, and X (formerly Twitter), subject to the most stringent...
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What is the Digital Services Act (DSA)?
Table of Contents
The Digital Services Act (DSA) is a European Union law that establishes a comprehensive set of new obligations for online platforms to protect fundamental rights online, including freedom of expression, and to tackle illegal content, disinformation, and harmful products.
The DSA aims to create a safer digital space where illegal content can be quickly removed, users have more control over what they see online, and platforms are held accountable for the content they host. It applies to a wide range of online services, from social media platforms and online marketplaces to search engines and hosting services. The law operates on a tiered system, with stricter obligations for very large online platforms (VLOPs) and very large online search engines (VLOSEs) – those with 45 million or more active users in the EU.
For example, on February 17, 2024, the European Commission designated 17 VLOPs and VLOSEs, including Meta Platforms, Apple, Google, and X (formerly Twitter), subject to the most stringent requirements under the DSA. European Commission announcement.
Key Obligations Under the DSA
The DSA imposes a variety of obligations on online platforms, categorized by their size and role in the digital ecosystem. These obligations cover areas such as content moderation, transparency, user rights, and risk assessment.
- Illegal Content Removal: Platforms must have mechanisms in place to promptly remove illegal content upon receiving a valid notice. DSA Factsheet
- Transparency reporting: Platforms must publish regular reports on their content moderation activities, including the number of notices received and actions taken. DSA Factsheet
- User Rights: Users have the right to appeal content moderation decisions and to receive explanations for why their content was removed or restricted. DSA Factsheet
- Risk Assessment: VLOPs and VLOSEs must conduct risk assessments to identify and mitigate systemic risks associated with their services, such as the spread of disinformation or the impact on fundamental rights. DSA Factsheet
- Advertising Transparency: Platforms must provide users with details about why they are seeing specific advertisements and allow them to opt out of targeted advertising. DSA Factsheet
The DSA also introduces a new system for trusted flaggers – organizations that can report illegal content to platforms with a higher degree of confidence. European Commission announcement.
Enforcement and Penalties
The DSA is enforced by the European Commission, in cooperation with national Digital Services Coordinators in each EU member state. The Commission has the power to investigate platforms, issue fines, and even ban platforms from operating in the EU if they repeatedly violate the law.
Penalties for non-compliance can be important.For serious infringements, the DSA allows for fines of up to 6% of a platform’s global annual revenue. DSA Factsheet. The first fines under the DSA were issued in February 2024 against TikTok for failing to adequately protect children’s data. European Commission Press Release.
On February 29, 2024, the European Commission opened formal investigations against Meta (Facebook and Instagram) over potential breaches of the DSA related to the protection of minors and the assessment of systemic risks. European Commission Press Release.
impact on U.S. Companies
The DSA has significant implications for U.S. tech companies that operate in the EU, even if they are not based there. Any platform offering services to users in the EU must comply with the DSA, regardless of its location.
This means that companies like Google, Meta, X, and Amazon have had to make ample changes to their policies and practices to meet the DSA’s requirements. These changes include investing in content moderation teams, improving transparency reporting, and enhancing user control over their data. The DSA is often seen as a potential model for similar regulations in other countries, including the United States.
In December 2023,the U.S. Department of Commerce released a report assessing the DSA and its potential impact on U.S. businesses.