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- The Digital Services Act (DSA) is a European Union law that establishes a complete set of new obligations for online platforms to protect essential 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...
- On April 17, 2024, the DSA began to apply fully to all online platforms operating in the EU, with VLOPs and VLOSEs subject to the rules from February...
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What is the Digital Services Act (DSA)?
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The Digital Services Act (DSA) is a European Union law that establishes a complete set of new obligations for online platforms to protect essential 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 hosted on thier services. 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, wiht stricter obligations for very large online platforms (VLOPs) and very large online search engines (VLOSEs).
On April 17, 2024, the DSA began to apply fully to all online platforms operating in the EU, with VLOPs and VLOSEs subject to the rules from February 17, 2024. This marked a significant step towards regulating the digital landscape in Europe. European Commission – Digital Services Act
Who Does the DSA Affect?
The DSA impacts a broad spectrum of online service providers, categorized by size and function. It affects intermediary services, which include providers of caching, DNS, hosting, and content delivery networks. It also targets online platforms, such as social networks, marketplaces, and app stores, and very large online platforms (VLOPs) and very large online search engines (VLOSEs).
VLOPs, defined as platforms with 45 million or more monthly active users in the EU, face the most stringent requirements. As of February 2024, 17 platforms were designated as VLOPs by the European Commission, including Meta’s Facebook and Instagram, TikTok, and X (formerly Twitter).VLOSEs, with over 10 million monthly active users, also have specific obligations. Smaller platforms are subject to lighter-touch rules.
The European Commission published a list of designated VLOPs and VLOSEs on April 26, 2024. European Commission – VLOP and VLOSE Designations
What are the Key Obligations Under the DSA?
The DSA introduces several key obligations for online platforms,varying based on their size and role. These include enhanced due diligence obligations, transparency requirements, and mechanisms for users to report illegal content. Platforms must implement “know your business user” procedures to identify traders on their platforms and ensure they comply with EU law.
VLOPs and VLOSEs face additional obligations, such as conducting risk assessments to identify systemic risks related to the spread of illegal content, disinformation, and other harms. They must also implement mitigation measures to address these risks, including content moderation, fact-checking, and algorithmic transparency. The DSA also introduces new rules on targeted advertising, prohibiting the use of sensitive personal data and targeting minors.
For example, TikTok is required to provide users with tools to understand why they are seeing specific content in their “For You” feed, as mandated by the DSA’s algorithmic transparency requirements. TikTok – DSA Transparency Report
How is the DSA Enforced?
Enforcement of the DSA is primarily the obligation of the European Commission, with the assistance of the Digital Services coordinators (DSCs) in each EU member state. the Commission has the power to investigate potential breaches of the DSA and impose fines of up to 6% of a platform’s global annual revenue.
The European Commission initiated its first investigations under the DSA in April 2024, focusing on potential breaches related to the protection of minors and the transparency of algorithmic systems. DSCs play a crucial role in supervising compliance at the national level, handling user complaints, and coordinating with the Commission. The DSA also establishes a new mechanism for platforms to respond to urgent requests from national authorities to remove illegal content.
On May 15, 2024, the European Commission announced it was opening formal investigations into X, TikTok, and Meta regarding their compliance with the DSA. European commission - DSA Investigations Proclamation
What are the Potential Impacts of the DSA?
The DSA is expected to have a significant impact on the online habitat, perhaps leading to a reduction in illegal content, increased transparency, and greater accountability for online platforms. It could also empower users with more control over their online experiences and protect their fundamental rights.
Though, the DSA also faces challenges, including concerns about potential over-censorship, the complexity of implementing the new rules, and the risk of stifling innovation. The effectiveness of the DSA will depend on how it is enforced and how platforms adapt to the new regulatory landscape. The law is being closely watched by policymakers and industry stakeholders around the world, as it could serve as a model for digital regulation in other jurisdictions.
A report by the European Parliament estimates that full implementation of the DSA could reduce the spread of illegal content online by up to 20% within the first three years.