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- The Digital Services Act (DSA) is a European Union law that establishes a thorough set of new obligations for online platforms to create a safer digital space for...
- The DSA aims to address the spread of illegal content, disinformation, and harmful products online.It categorizes online services based on their size and impact,applying stricter rules to Very...
- For example, X (formerly Twitter) was designated as a VLOP on february 22, 2024, and is therefore subject to the most stringent requirements under the DSA.
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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 thorough set of new obligations for online platforms to create a safer digital space for users and fundamental rights online. It was adopted on October 4, 2022, and began applying to all online platforms operating in the EU on February 17, 2024, with full application for all services by February 17, 2025.
The DSA aims to address the spread of illegal content, disinformation, and harmful products online.It categorizes online services based on their size and impact,applying stricter rules to Very large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) – those with 45 million or more active users in the EU. These larger platforms face heightened scrutiny and obligations, including risk assessments, independent audits, and transparency reporting.
For example, X (formerly Twitter) was designated as a VLOP on february 22, 2024, and is therefore subject to the most stringent requirements under the DSA. Commission designates very large online platforms and search engines under the Digital Services Act (European Commission, February 22, 2024).
Key Obligations Under the DSA
The DSA introduces a wide range of obligations for online intermediaries, varying based on their size and role. These obligations cover areas such as content moderation, transparency, user rights, and accountability.
Some key obligations include:
- Illegal Content Removal: Platforms must have mechanisms to allow users to flag illegal content and act expeditiously to remove it.
- Transparency Reporting: VLOPs and VLOSEs must publish regular reports on their content moderation activities, including the number of notices received and actions taken.
- User Empowerment: Users must have clear and accessible ways to report illegal content, appeal content moderation decisions, and understand why content was removed or restricted.
- Risk Assessments: VLOPs and VLOSEs must assess and mitigate systemic risks associated with their services, such as the spread of disinformation or the impact on fundamental rights.
- Independent Audits: VLOPs and VLOSEs are subject to independent audits to verify their compliance with the DSA.
Meta, as a notable example, published its frist transparency report under the DSA on March 15, 2024, detailing its content moderation efforts and the prevalence of illegal content on its platforms.Meta’s first DSA Transparency Report (Meta, March 15, 2024).
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 potential violations and impose meaningful penalties.
Penalties for non-compliance can be substantial. Article 86 of the DSA outlines fines of up to 6% of a platform’s global annual revenue for serious infringements, and up to 5% for other violations. In cases of repeated serious infringements, the commission can even order a temporary ban on the platform’s operations within the EU.
On December 19, 2023, the European Commission formally opened investigations into X, TikTok, and Meta regarding their compliance with the DSA, specifically focusing on their measures to combat the spread of illegal content and disinformation. Commission opens formal investigations against X, TikTok and Meta under the Digital Services act (European Commission, December 19, 2023).
Impact on US-based Platforms
The Digital Services Act applies to all online platforms that offer services to users in the EU, regardless of where the platform is based. This means that US-based platforms like Google, Meta, and X are also subject to the DSA’s requirements.
US companies have had to adapt their policies and practices to comply with the DSA,frequently enough requiring significant investment in content moderation infrastructure and compliance teams. The DSA’s focus on transparency and user rights is also influencing the debate around online regulation in the United States.
Google, for example, announced in November 2023 that it would invest over $2 billion in safety and security measures to comply with the DSA. Investing in safety and security for the Digital Services Act (Google, November 29, 2023).
Future Developments and Challenges
The DSA is a relatively new law,and its full impact is still unfolding. Ongoing challenges include ensuring effective enforcement, adapting to evolving online threats, and balancing the need for content moderation with the protection of freedom of expression.
The European Commission is continuously monitoring the implementation of the DSA and is expected to issue further guidance and clarifications in the coming months. The DSA is also serving as a model for other countries considering similar regulations, perhaps leading to a more harmonized approach to online regulation globally.
The first VLOP risk assessment reports where due on February 17, 2024, and the Commission is currently reviewing these reports to assess the effectiveness of the platforms’ risk mitigation measures.