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The Digital Services Act: A Comprehensive Overview
Table of Contents
The Digital Services Act (DSA), a landmark regulation enacted by the European Union (EU), fundamentally reshapes the responsibilities of online platforms and aims to create a safer digital space for users. It came into full submission for all services on February 17, 2024, and represents a meaningful step towards regulating the digital economy. This article provides a detailed explanation of the DSA, its key provisions, and its implications.
What is the Digital Services Act?
The Digital Services Act is an EU law that establishes a comprehensive set of rules for online intermediaries and services, ranging from social media platforms like Meta (formerly Facebook) to online marketplaces like Amazon. It aims to protect fundamental rights online,including freedom of expression,and to foster innovation,while addressing risks such as the spread of illegal content,disinformation,and harmful products.
Key Objectives of the DSA
- User Protection: Safeguarding users against illegal content, harmful products, and manipulative practices.
- Accountability: Increasing the accountability of online platforms for the content hosted on their services.
- Transparency: Enhancing transparency regarding platform algorithms and content moderation decisions.
- Competition: Promoting fair competition in the digital market.
Who Does the DSA apply To?
the DSA applies to a broad range of online services, but the obligations vary depending on the size and nature of the service. The Act categorizes services into three tiers: ‘mere conduit’ services, ‘hosting’ services, and ‘online platforms’ with varying levels of duty.The most stringent obligations apply to “Very Large Online Platforms” (vlops) and “Very Large Online Search Engines” (VLOSEs) – those with 45 million or more active users in the EU.
VLOPs and VLOSEs: Heightened Scrutiny
VLOPs and VLOSEs, such as Google, X (formerly Twitter), and TikTok, face the most extensive obligations under the DSA. These include conducting risk assessments, implementing mitigation measures to address systemic risks (like the spread of illegal content or manipulation of elections), and providing greater transparency about their algorithms. The European Commission designated the frist 17 VLOPs and VLOSEs on April 26, 2023, requiring them to comply with the new rules.
Core Obligations Under the DSA
The DSA introduces a wide range of obligations for online services. These obligations are tiered, with VLOPs facing the most comprehensive requirements.
Content moderation and Illegal Content
Online platforms are required to implement mechanisms for users to report illegal content, and to act expeditiously upon receiving such reports. The DSA defines illegal content as anything unlawful under EU or member state law, including hate speech, terrorist content, and counterfeit goods. Platforms must provide clear statements of reasons for content removal or account suspension. The European Commission provides guidance on content moderation practices.
Transparency Requirements
The DSA mandates increased transparency regarding platform algorithms. VLOPs must provide users with information about the main parameters used in their recommender systems and allow users to opt-out of algorithmic recommendations. Platforms must also publish reports on their content moderation activities, including the number of notices received and actions taken. Transparency reports are a key component of DSA compliance.
Protection of Minors
The DSA includes specific provisions to protect minors online.Platforms are prohibited from targeting minors with personalized advertising based on their profiling. they are also required to take measures to prevent exposure of minors to harmful content. The European Commission emphasizes the importance of age-appropriate design and content moderation.
Enforcement and Penalties
Enforcement of the DSA is primarily the responsibility of the Digital Services Coordinators in each EU member state, under the supervision of the European Commission. Non-compliance can result in ample penalties, including fines of up to 6% of a platform’s global annual revenue.
Recent Enforcement Actions
In December 2023, the